Textron gets early tenders for $621.7 million of four series of notes

By Susanna Moon

Chicago, Sept. 28 - Textron Inc. said it had received tenders of $621,699,000 for four series of notes as of 5 p.m. ET on Sept. 25, the early tender date.

Textron and wholly owned subsidiary Textron Financial Corp. began tender offers for up to $650 million principal amount of five series of notes on Sept. 14.

The company said on Sept. 22 that it received tenders for $122,318,000 principal amount, or 49%, of its $250 million of 4.5% notes due Aug. 1, 2010 in the first of the tender offers.

In the second offer, Textron has received tenders for $144,333,000 of its $300 million of 6.5% notes due June 1, 2012. The company said it will purchase up to $150 million of the notes at $1,040 for each $1,000 principal amount.

In the third offer, Textron Financial has received $152,178,000 from holders of its $317,332,000 of 5.125% medium-term notes. It is offering to purchase some of the notes at $1,002.50 per note.

In the fourth offer, Textron Financial has received $238,224,000 of its $385,779,000 of 4.6% medium-term notes, series E. It is offering to purchase some of the note at $1,015 per note.

In the fifth offer, Textron Financial has received $86,964,000 of its $471,907,000 of 6% notes due Nov. 20, 2009. The company will purchase up to $150 million at $1,002.50 per note.

The offer for the 4.5% notes expired at 5 p.m. ET on Sept. 21, and the remaining offers will expire at 11:59 p.m. ET on Oct. 9.

The total amount includes a $30.00 premium for all notes tendered by the early tender date except the 4.5% notes.

The settlement date is expected to be Oct. 13.

Textron will pay accrued interest to the settlement date.

The maximum principal amount of 5.125% notes accepted in the third offer will be the difference between $500 million and the sum of the principal amount of 4.5% notes and 6.5% notes purchased.

The maximum principal amount of 4.6% notes accepted in the fourth offer will be the difference between $500 million and the sum of the principal amount of 4.5% notes, 6.5% notes and 5.125% notes accepted.

If the principal amount of notes tendered in an offer is greater than the cap for that offer, those notes will be accepted for purchase on a pro rata basis. In the case of the third and fourth offers, if the 5.125% notes are subject to proration, no 4.6% notes will be purchased.

For each $1,000 principal amount, the purchase price is $1,017.50 for the 4.5% notes.

The offers are not subject to any minimum or financing conditions.

Textron said the purpose of the offers, together with a public offering of notes, is to lengthen the maturity profile of the companies' debt.

The companies expect to use available cash on hand to fund the offers, and Textron may also use proceeds from the public offering of its notes.

J.P. Morgan Securities Inc. (866 834-4666 or 212 834-3424) and Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) are the dealer managers, and Global Bondholder Services Corp. (866 952-2200 or 212 430-3774) is the information agent.

Textron is an aircraft, industrial and finance company based in Providence, R.I.

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