Electric housewares maker Salton, Inc. announced it completed its previously announced private debt exchange offer for its outstanding 10.75 percent senior subordinated notes due 2005 and its outstanding 12.25 percent senior subordinated notes due 2008.
Salton has accepted for exchange an aggregate of approximately U.S. $75.2 million of 2005 notes and approximately $90.1 million of 2008 notes that were validly tendered in the exchange offer.
In connection with the exchange offer, the company has issued an aggregate of approximately $99.2 million in principal amount of new second lien notes, 2,041,617 shares of common stock of the company and 135,230 shares of new Series C preferred stock of the company with a face amount equal to $13.5 million.
Salton also announced that, in connection with the exchange offer, the company obtained the consent of the holders of a majority of the outstanding 2005 notes and 2008 notes to amend the indentures governing such notes to eliminate substantially all of the restrictive covenants and certain events of default contained in such indentures.
"This transaction reduces our total interest bearing debt by approximately $66.1 million and decreases by $75.2 million the principal amount of 2005 notes that are scheduled to mature this year," said Leonhard Dreimann, Salton's CEO. "We continue to explore strategic options to improve our liquidity and enhance operating performance of the company, including potential sales of assets or businesses, the creation of new foreign debt, repurchases of outstanding debt securities, and further reductions in expenses."
Back to Breaking News