By Lisa Kerner
Charlotte, N.C., July 15 – Smith & Wesson Holding Corp. issued $75 million of 5% senior notes due 2018 on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.
Proceeds will be used for general corporate purposes, which could include vertical integration opportunities, capital investments, acquisitions and stock repurchases.
Smith & Wesson may redeem all or part of the notes any time prior to July 15, 2016 at par plus an applicable premium. The notes are callable at 102.5 during the 12-month period beginning July 15, 2016 and at par during the 12-month period beginning July 15, 2017.
In addition, the company may call up to 35% of the notes at 105 under an equity clawback option at any time prior to July 15, 2016.
Under the note purchase agreement, Smith & Wesson may not incur any debt unless its pro forma consolidated coverage ratio is at least 3 to 1.
The firearms manufacturer is based in Springfield, Mass.
| Issuer: | Smith & Wesson Holding Corp.
|
| Issue: | Senior notes
|
| Amount: | $75 million
|
| Maturity: | July 15, 2018
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Call option: | At par plus applicable premium any time prior to July 15, 2016, at 102.5 during 12 months beginning July 15, 2016 and at par during 12 months beginning July 15, 2017
|
| Equity clawback: | For up to 35% of notes at 105 at any time prior to July 15, 2016
|
| Pricing date: | July 10
|
| Settlement date: | July 15
|
| Distribution: | Private placement
|
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