Wednesday, Brunswick Corp. (BC) completed open market purchases of approximately $85 million of its outstanding 11.75% notes due 2013. Brunswick purchased these notes for approximately $97 million, excluding accrued interest. Combined with the purchase of approximately $12 million completed pursuant to a tender offer earlier this year, Brunswick has reduced the amount of 2013 notes outstanding to approximately $153 million.
The company noted that this action is consistent with its previously stated objective of reducing its near-term debt maturities to enhance its financial flexibility. Brunswick accomplished this most recent transaction using a portion of the net proceeds from its recently completed offering of $350 million senior secured notes due 2016. The net proceeds were also used to retire $149 million of 2011 notes and, to fund the aforementioned tender offer for the 2013 notes. Additionally, the company reduced its borrowings under the Mercury Marine ABL facility by $74 million during the third quarter, a portion of which was funded with proceeds from the notes offering.
by RTT Staff Writer
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