Textron launches cash tender offer for any and all 4.5% convertibles

By Jennifer Chiou

New York, Sept. 14 - Textron Inc. announced the start of a cash offer for any and all of its $599,993,000 of 4.5% convertible senior notes due 2013.

The offer will end at midnight ET on Oct. 12.

For each $1,000 principal amount, participating holders will receive a cash purchase price equal to the sum of the volume-weighted average price multiplied by 57.1429, plus a fixed cash amount of $504.50. The purchase price will not be less than $1,075.93 and will be no more than $1,790.22 per $1,000 principal amount.

Textron will also pay accrued interest.

The company noted that the volume-weighted average price will be measured on 20 consecutive trading days beginning on Sept. 15 and ending on Oct. 12, the date on which pricing will be fixed.

The offer does not have a minimum tender condition. It is, however, conditioned on the issue of at least $600 million of new unsecured senior notes prior to the offer deadline.

Goldman Sachs & Co. (800 828-3182 or call collect 212 357-4692), J.P. Morgan Securities LLC (800 261-5767 or call collect 212 622-2614) and Morgan Stanley & Co. LLC are the dealer managers. Global Bondholder Services Corp. is the depositary and information agent (866 794-2200 or call collect 212 430-3774).

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

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