(RTTNews) -  Steinway Musical Instruments, Inc. (LVB: News ) announced that it has signed deal with Samick Musical Instruments Co., Ltd. for private placement of 1.7 million shares of ordinary common stock at $16 per share.

Samick also granted the right to buy by March 31, 2010 an additional 1.7 million shares of ordinary common stock at an exercise price of $16 per share.

Steinway intends to use offering proceeds of about $27 million to retire outstanding debt and for general corporate purposes.
The placement will bring Samick's holdings in Steinway to about 1.9 million shares. Steinway said that its Chairman, Kyle Kirkland, and Chief executive, Dana Messina, continue to hold 100% of the Class A shares which represent over 80% of the voting power of the total common stock.

In connection with the placement, Jong Sup Kim, Chairman of Samick Musical Instruments Co., Ltd., will join the Board of Directors of Steinway Musical Instruments bringing the total number of directors to nine.

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by RTT Staff Writer

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