Fleetwood Announces $70.7 Million Direct Equity Placement
18 Novembro 2005 - 12:07PM
PR Newswire (US)
RIVERSIDE, Calif., Nov. 18 /PRNewswire-FirstCall/ -- Fleetwood
Enterprises, Inc. (NYSE:FLE), a leading producer of recreational
vehicles and manufactured housing, announced today it has received
definitive commitments from institutional investors for the
purchase of 7.0 million shares of common stock, which would bring
the Company's total common stock outstanding to 63.5 million
shares. The shares will be issued pursuant to a shelf registration
statement, which was previously filed with and declared effective
by the Securities and Exchange Commission. The $70.7 million
offering, conducted as a direct equity placement, is expected to
close on or about November 21, 2005. The proceeds, net of offering
fees and expenses, will be used to repay deferred distributions on
the Company's 6% convertible trust preferred securities, plus
accrued interest on the deferral amount, as well as for general
corporate purposes. On the next scheduled payment date of February
15, 2006, Fleetwood expects to pay the cumulative deferred
obligation at that time of approximately $58.8 million. In addition
to eliminating the liability from its balance sheet, the payment
will also save the Company approximately $3.5 million in annualized
interest charges on the deferral. The 6% convertible trust
preferred securities were issued in 1998, and mature on February
15, 2028. Fleetwood began deferring payments on the security in
November 2001, and has the right under the trust indenture to
continue the deferral for a total of 20 quarters, or until November
2006. After paying the deferred distributions, Fleetwood will have
greater flexibility under the trust indenture to engage in exchange
offers or repurchases of the securities, which currently requires
the consent of holders of two-thirds of the outstanding securities
so long as the distributions are being deferred. The Company will
also have the option at any time after the payment to begin another
deferral period of up to 20 quarters. Lehman Brothers Inc. is
acting as the exclusive placement agent for the transaction. This
news release does not constitute an offer to sell or the
solicitation of an offer to buy securities. A prospectus and
prospectus supplement relating to this transaction may be obtained
from Lehman Brothers Inc. at 745 Seventh Avenue, New York, New York
10019, or directly from Fleetwood. About Fleetwood Fleetwood
Enterprises, Inc. is a leading producer of recreational vehicles
and manufactured homes. This Fortune 1000 company, headquartered in
Riverside, Calif., is dedicated to providing quality, innovative
products that offer exceptional value to its customers. Fleetwood
operates facilities strategically located throughout the nation,
including recreational vehicle, manufactured housing and supply
subsidiary plants. For more information, visit the Company's
website at http://www.fleetwood.com/. This press release contains
certain forward-looking statements and information based on the
beliefs of Fleetwood's management as well as assumptions made by,
and information currently available to, Fleetwood's management.
Such statements reflect the current views of Fleetwood with respect
to future events and are subject to certain risks, uncertainties,
and assumptions, including risk factors identified in Fleetwood's
10-K and other SEC filings. These risks and uncertainties include,
without limitation, the cyclical nature of both the manufactured
housing and recreational vehicle industries; ongoing weakness in
the manufactured housing market; continued acceptance of the
Company's products; the potential impact on demand for Fleetwood's
products as a result of changes in consumer confidence levels; the
effect of global tensions on consumer confidence; expenses and
uncertainties associated with the introduction and manufacturing of
new products; the future availability of manufactured housing
retail financing, as well as housing and RV wholesale financing;
the price of gasoline as it might impact recreational vehicle
sales; availability and pricing of raw materials; changes in retail
inventory levels in the manufactured housing and recreational
vehicle industries; competitive pricing pressures; the ability to
attract and retain quality dealers, executive officers and other
personnel; and the Company's ability to obtain financing needed in
order to execute its business strategies. Actual results, events
and performance may differ materially. Contact: Lyle Larkin, Vice
President -- Treasurer (951) 351-3535 Kathy A. Munson, Director --
Investor Relations (951) 351-3650 DATASOURCE: Fleetwood
Enterprises, Inc. CONTACT: Lyle Larkin, Vice President --
Treasurer, +1-951-351-3535, or Kathy A. Munson, Director --
Investor Relations, +1-951-351-3650, both of Fleetwood Enterprises,
Inc. Web site: http://www.fleetwood.com/
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