Textron Boosts Note Offering 80%, Stock Offering 8.9%

   DOW JONES NEWSWIRES 
 

Textron Inc. (TXT) boosted its note offering by 80% and its share offering by 8.9% as the defense contractor and aircraft maker looks to increase liquidity.

Textron, which makes Bell helicopters and Cessna jets, has been battling a slump in orders for business jets and canceled defense contracts. In recent months, the company has said it would cut 14% of its work force and shut most of its commercial-finance business amid unstable credit markets.

The stock and bond offerings come on top of Textron's 91% dividend cut and the drawing down of the balance of its $3 billion committed credit line in February.

Textron expects proceeds of about $757 million from the stock and bond offering, compared to its initial expectation for about $500 million on Tuesday. Proceeds' uses will include debt repayment.

The company priced 20.7 million shares at $10.50 apiece, a 2.9% discount to Wednesday's closing price. Shares are up 3.6% at $11.20 in premarket trading.

It also agreed to sell $540 million of four-year convertible senior notes. The notes aren't redeemable before maturity.

Tuesday, Textron reported first-quarter net income fell 63% on a sharp drop in sales and weakness at several of its units. It also lowered its full-year outlook.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; [e-mail]