Corporate and Financial
Brunswick Corporation Announces Pricing of $350 Million of Senior Secured Notes due 2016
LAKE FOREST, Ill., Aug. 11 /PRNewswire-FirstCall/ -- Brunswick Corporation
(NYSE: BC) announced today that it has priced an offering of $350 million
aggregate principal amount (increased from $250 million, previously announced)
of 11.25 percent senior secured notes due 2016 at an issue price of 97.036
percent. The new notes will be issued in a private offering to qualified
institutional buyers in accordance with Rule 144A, and to persons outside the
U.S. pursuant to Regulation S under the Securities Act of 1933, as amended.
The new notes will be secured by first-priority liens on Brunswick's
headquarters and domestic retail bowling centers it owns, and by
second-priority liens on substantially all of the assets that secure
Brunswick's existing senior secured revolving credit facility on a
first-priority lien basis.
The sale of the new notes is expected to be consummated on Aug. 14, 2009,
subject to customary closing conditions.
Brunswick intends to use the net proceeds from the private offering of the
new notes primarily to fund its previously announced cash tender offer and
consent solicitation for its outstanding 5 percent notes due 2011, on the
terms and conditions set forth in the offer to purchase and consent
solicitation statement dated Aug. 10, 2009, and related letter of transmittal.
The tender offer is made only through, and pursuant to the terms of, the offer
to purchase and the letter of transmittal. As of July 4, 2009, $150 million
aggregate principal amount of the 2011 notes was outstanding. Any proceeds
not used to fund the tender offer will be used for general corporate purposes,
including the repurchase, redemption, defeasance or repayment of any 2011
notes not purchased in the tender offer, or the escrow of funds to repurchase,
redeem, defease or repay any such 2011 notes, or to repurchase, redeem,
defease or repay indebtedness of Brunswick, including Brunswick's 11.75
percent senior notes due 2013.
Brunswick also announced that it has amended its revolving credit
facility. The amendment increased the amount of permitted secured debt in
connection with the refinancing of its 2013 notes as well as for general
corporate purposes.
The new notes have not been, and will not be, registered under the
Securities Act or any state securities laws and, unless so registered, may not
be offered or sold in the United States except pursuant to an applicable
exemption from the registration requirements of the Securities Act and
applicable state securities laws.
This news release does not and will not constitute an offer to sell or the
solicitation of an offer to buy the new notes or any other securities, nor
shall there be any sale of the new 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.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to
instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including
Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and
inboard engines; MotorGuide trolling motors; Attwood marine parts and
accessories; Land 'N' Sea, Kellogg Marine, Diversified Marine and Benrock
parts and accessories distributors; Arvor, Bayliner, Bermuda, Boston Whaler,
Cabo Yachts, Crestliner, Cypress Cay, Harris, Hatteras, Kayot, Lowe, Lund,
Maxum, Meridian, Ornvik, Princecraft, Quicksilver, Rayglass, Sea Ray, Sealine,
Triton, Trophy, Uttern and Valiant boats; Life Fitness and Hammer Strength
fitness equipment; Brunswick bowling centers, equipment and consumer products;
Brunswick billiards tables and foosball tables. For more information, visit
http://www.brunswick.com.
SOURCE: Brunswick Corporation
CONTACT: Bruce J. Byots, Vice President - Corporate and Investor
Relations of Brunswick Corporation, +1-847-735-4612,
bruce.byots@brunswick.com
Web Site: http://www.brunswick.com
