A major construction project is finally moving forward, although slowly, after being delayed by a tiny, endangered bat.
CLEVELAND - American Greetings Corp. on Tuesday offered to buy back nearly $255 million of its 7.375 percent notes due in 2016, while also offering to sell $225 million in senior notes in a related public offering.
The greeting-card maker plans to use net proceeds from the offering, along with any cash on hand, to finance its cash tender offers.
The tender offers cover 7.375 percent senior notes due in 2016, and non-senior notes paying the same interest rate, and due in the same year. About $222 million in aggregate principal was outstanding as of Monday for the senior notes, and $32.7 million for the other series of notes.
The tender offers are expected to expire on Dec. 13. Notes validly tendered and not validly withdrawn by Nov. 29 will be entitled to the total consideration under the offers.
American Greetings said any remaining net proceeds from its related offering of $225 million in senior notes will be used to finance the redemption of any notes that remain outstanding after the tender offers are completed.
J.P. Morgan Securities LLC and BofA Merrill Lynch are acting as joint book-running managers for the offering.
American Greetings' shares rose 3 cents to $16.08 in morning trading Tuesday.
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