FTD to redeem 12%, 14% preferred stock, some 7¾% notes with IPO proceeds

By Ted A. Knutson

Washington, Jan. 7 - FTD Group, Inc. intends to use most of a planned initial public offering of common stock to redeem all its 14% senior and 12% junior redeemable exchangeable cumulative preferred stock and to redeem $25.6 million principal amount of its 7¾% senior subordinated notes due 2014.

Holders of the 14% preferred shares will receive 114% of liquidation preference while investors with the 12% securities will get 112%.

The Downers Grove, Ill.-based florist said it will redeem the 7¾% notes at 108% of par.

The total redemption will account for $225 million of the projected $250 million of IPO gross proceeds.

Currently, FTD is scheduled to offer 15.4 million shares of common stock at a current estimated range of $12 to $14 each.

Any funds from a greenshoe of up to 2.3 million shares will be used to further reduce corporate debt, the company said.

FTD's disclosure came in an S-1/A Securities and Exchange Commission filing amendment to its original Nov. 23 IPO registration.

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