Collins & Aikman Announces the Completion of its Offering of Senior Subordinated Notes Due 2012
August 26 2004 - 5:00PM
PR Newswire (US)
Collins & Aikman Announces the Completion of its Offering of
Senior Subordinated Notes Due 2012 TROY, Mich., Aug. 26
/PRNewswire-FirstCall/ -- Collins & Aikman Corporation
(NYSE:CKC), today announced that its wholly owned subsidiary,
Collins & Aikman Products Co. ("Products"), completed an
offering of $415 million in aggregate principal amount of its
senior subordinated notes due 2012 for gross proceeds of
approximately $400 million. The notes bear interest at a rate of
12-7/8%. The notes are guaranteed by Collins & Aikman
Corporation and each of Products' domestic subsidiaries that is a
guarantor under its senior credit facility. As previously
announced, the gross proceeds from the notes offering will be used
to redeem all $400 million in principal amount of Products' 11-1/2%
senior subordinated notes due 2006. The notes were offered in a
private offering to qualified institutional buyers under Rule 144A
and to persons outside the United States under Regulation S. The
notes will not be registered under the Securities Act of 1933, as
amended, and unless so registered, may not be offered or sold in
the United States except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act and applicable state securities laws. This press
release shall not constitute an offer to sell, or the solicitation
of an offer to buy, nor shall there be any sale of the senior notes
in any state in which such offer, solicitation, or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state. Cautionary Statement Regarding
Forward-looking Statements This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from the anticipated results because of certain risks
and uncertainties, including but not limited to general economic
conditions in the markets in which the Company operates, dependence
on significant automotive customers, pricing pressure from
automotive customers, the level of competition in the automotive
supply industry, the need to finance significant up-front costs to
secure new business, reliance on the continued availability of
certain arrangements for liquidity, fluctuations in the production
of vehicles for which the Company is a supplier, changes in the
popularity of particular car models or particular interior trim
packages, changes in consumer preferences, the loss of programs on
particular interior trim packages, labor disputes involving the
Company or its significant customers, the substantial leverage of
the Company and its subsidiaries, limitations imposed by the
Company's debt facilities, charges made in connection with the
integration of operations acquired by the Company, the
implementation of the reorganization plan, risks associated with
conducting business in foreign countries and other risks detailed
from time to time in Collins & Aikman Corporation's Securities
and Exchange Commission filings. Forward-looking statements speak
only as of the date they are made. The Company undertakes no
obligation to correct or update publicly any of them in light of
new information, future events or otherwise. DATASOURCE: Collins
& Aikman Corporation CONTACT: J. Michael Stepp, Vice Chairman
& Chief Financial Officer, +1-248-824-1520, , or Robert Krause,
Vice President and Treasurer, Head of Investor Relations,
+1-248-733-4355, , both of Collins & Aikman Corporation Web
site: http://www.collinsaikman.com/
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