Collins & Aikman (NYSE:CKC)
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Collins & Aikman Announces the Pricing of its Offering of Senior
Subordinated Notes Due 2012
TROY, Mich., Aug. 12 /PRNewswire-FirstCall/ -- Collins & Aikman Corporation
(NYSE:CKC), today announced that its wholly owned subsidiary, Collins & Aikman
Products Co. ("Products"), priced $415 million in aggregate principal amount of
its senior subordinated notes due 2012 for gross proceeds of approximately $400
million. The notes will bear interest at a rate of 12 7/8%. The notes will be
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 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 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 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/