Collins & Aikman (NYSE:CKC)
Historical Stock Chart
From Jul 2019 to Jul 2024
Collins & Aikman Announces Proposed $400 Million Offering of
Senior Subordinated Notes Due 2012
TROY, Mich., Aug. 3 /PRNewswire-FirstCall/ -- Collins & Aikman Corporation
(NYSE:CKC), today announced that its wholly owned subsidiary, Collins & Aikman
Products Co. ("Products"), intends to offer senior subordinated notes due 2012
for gross proceeds of approximately $400 million. These notes will be
guaranteed by Collins & Aikman Corporation and each of Products' domestic
subsidiaries that is a guarantor under its senior credit facility. The net
proceeds from the note offerings are expected to be used to redeem all $400
million in principal amount of Products' 11 1/2% senior subordinated notes due
2006. Products also announced its intention to amend and restate its senior
credit facility. The offering is not conditioned on such amendment and
restatement.
The notes are being 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 subordinated 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/