Armor may return with $400 million note offering it terminated in June

By Paul A. Harris

St. Louis, Oct. 31 - Armor Holdings, Inc. announced in a 10-Q filed Tuesday with the Securities and Exchange Commission that it is monitoring the interest rate environment for the appropriate opportunity to bring back the $400 million offering of senior subordinated notes that it launched on June 20 and subsequently pulled.

On June 27 Armor Holdings postponed a $400 million issue of 10-year senior subordinated notes (B1/B+).

Merrill Lynch & Co. and Wachovia Securities were joint bookrunners for the postponed notes offering, which Armor, a Jacksonville, Fla., maker of security products and vehicle armor systems, had brought to marked in an attempt to refinance debt used to acquire Stewart and Stevenson and for general corporate purposes.

In the Tuesday 10-Q filing, the company commented that it withdrew the initial offering "due to volatile market conditions surrounding the June 28, 2006 Federal Open Market Committee meeting, a spike in the 10-year Treasury and widening spreads."

Armor went on to say that on June 20, Standard & Poor's affirmed its BB corporate rating and revised the outlook to positive from stable. On June 22, Moody's Investors Service affirmed its Ba3 corporate rating and classified the outlook as stable.

Armor did not disclose any information with regard to the potential timing of the revived offer it is contemplating nor did it identify any syndicate names.

Company officials were unavailable for comment when contacted Tuesday by Prospect News.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.