Newell Rubbermaid offers stock, cash in exchange for 5.5% convertibles

By Angela McDaniels

Tacoma, Wash., Aug. 17 - Newell Rubbermaid Inc. has begun an exchange offer for its $345 million principal amount of 5.5% convertible senior notes due 2014, according to a company news release.

For each $1,000 principal amount of convertibles, the company is offering 116.198 newly issued shares of common stock and $160.00 in cash. Holders will also receive accrued interest up to but excluding the settlement date.

The number of shares being offered per note is the same as the current conversion rate. Newell Rubbermaid stock closed at $16.05 (NYSE: NWL) on Aug. 16, giving 116.198 shares a value of $1,864.98.

The offer will expire at 11:59 p.m. ET on Sept. 14.

The offer is part of the company's capital structure optimization plan, which was announced Aug. 2 and is designed to simplify Newell Rubbermaid's capital structure and reduce interest expense. The plan also includes a $550 million issue of new senior notes due 2020, the repurchase of $500 million of shares and a tender offer for the company's $300 million of 10.6% notes due 2019 that expired Aug. 9.

Holders tendered $279,321,000 principal amount, or 93.1%, of the 10.6% notes. They received $1,437.50 per $1,000 principal amount of notes.

Global Bondholder Services Corp. (866 937-2200 or 212 430-3774) is the exchange agent and information agent for the exchange offer.

Atlanta-based Newell Rubbermaid makes consumer and commercial products.

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