Brunswick completes purchase of US$85m of outstanding notes
By IBI Magazine
Brunswick Corp said today that it had recently completed open market purchases of about US$85m of its outstanding 11.75 per cent notes that are due 2013. A company statement noted it is part of a strategy to reduce near-term debt to increase its financial flexibility. Brunswick purchased the notes for about $97m, excluding accrued interest. It said it reduced the amount of 2013 notes outstanding to about $153m. It used part of the proceeds from its recently completed offering of US$350m senior secured notes due 2016 to fund the purchase as well as retire US$149m of 2011 notes. Brunswick also reduced its borrowings under the Mercury Marine ABL facility by US$74m during the third quarter. On Tuesday, Standard & Poor's Ratings Services upgraded its rating outlook on Brunswick Corp to stable from negative. "The outlook revision is based on our expectation that Brunswick's liquidity will be sufficient to carry it at least through 2010," Standard & Poor's credit analyst Andy Liu said in a statement. S&P also noted that Brunswick has a minimal number of debt maturities coming up in the near term. S&P also affirmed its other Brunswick ratings, including a corporate credit rating of B-, which is six notches into junk territory. S&P said the rating is due to a sharp decline in Brunswick's profitability because of lower demand for its marine products. It also noted slim prospects for a turnaround anytime soon.
(3 December 2009)
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