Fortune Brands completes oversubscribed offer for $1.05 billion notes

By Jennifer Chiou

New York, Aug. 26 - Fortune Brands, Inc. announced the close of the tender offers for $2.5 billion of its notes that began on July 28. Because of the participation level, tenders were prorated to accept the maximum purchase price of $1.05 billion, previously raised from $1 billion.

The company specifically accepted the following:

• $550 million of the $670,014,000 of tendered 5.375% notes due 2016, for which it paid $1,149.56 per $1,000 of notes. The outstanding amount was $950 million;

• All $31,686,000 of tenders for the $90,986,000 of 8.625% debentures due 2021, for which it paid the $1,367.30 per $1,000 of notes;

• All $36,208,000 of tenders for the $150 million of 7.875% debentures due 2023, for which it paid $1,311.45;

• All $119,521,000 of tenders for the $300 million of 4.875% notes due 2013, for which it paid $1,082.03; and

• $173,586,000 of the $256,271,000 of tenders for the $500 million of 6.375% notes due 2014, for which it paid $1,140.81 per note.

Each total purchase price included an early tender payment of $30.00 per $1,000 principal amount of notes tendered by the early tender date.

As announced, due to Fortune's receipt of tenders for $1,244,553,000 of notes as of 5 p.m. ET on Aug. 10, the early tender date, it terminated the tender offers for its 6.625% debentures due 2028 and 5.875% notes due 2036. It had tallied early tenders for $41.15 million of the $200 million of 6.625% debentures as well as $106,497,000 of its $300 million of 5.875% notes due 2036.

As reported, the company was to purchase no more than $550 million of the 5.375% notes due 2016. This cap was already increased from $500 million.

Holders also received accrued interest up to but excluding the Aug. 25 settlement date.

Each offer expired at 11:59 p.m. ET on Aug. 24.

As previously noted, the tender offers were funded with up to $1 billion of the anticipated net proceeds from the sale of the company's Acushnet Co. golf business. Fortune Brands previously said that it wanted to reduce debt and further strengthen the capital structures of its beam business and its home and security business.

The tender offers were subject to various conditions that include the sale of the golf business.

The lead dealer managers were Barclays Capital Inc. (800 438-3242 or 212 528-7581) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811). The information agent and depositary was D.F. King & Co., Inc. (800 848-3416 or 212 269-5550).

Fortune Brands is a consumer brands company based in Deerfield, Ill.

© 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.