Liz Claiborne, Inc. today announced that it is commencing a cash tender offer (the "Offer") to purchase up to euro 155,000,000 aggregate principal amount of its euro 350,000,000 5.0% Notes due 2013 (the "Notes"), subject to increase or decrease by the Company (the "Maximum Principal Amount"). The Offer and the Proposal (as defined below) are being made in accordance with the terms and subject to the conditions contained in a Tender Offer Memorandum dated March 8, 2011 (the "Tender Offer Memorandum"). The Offer will expire at 5:01 a.m. London time (12:01 a.m. New York time) on April 5, 2011, unless extended or earlier terminated by the Company (the "Expiration Deadline"). Concurrently with the Offer, the Company is inviting holders of the Notes to consider and pass an Extraordinary Resolution to provide for the amendments discussed below to be made to the terms and conditions of the Notes (the "Proposal").
The purpose of the Offer is to manage the Company's liability profile and upcoming maturities by refinancing a portion of the outstanding Notes using a portion of the proceeds from the issuance of a new series of senior secured notes (the "New Notes") in order to maintain the Company's financial flexibility. The purpose of the Proposal is to permit the issuance of new secured indebtedness (such as the New Notes), so long as the net proceeds to the Company of such indebtedness are used to redeem, repurchase, prepay, defease, refund or refinance the Notes (and fund any interest or premia thereon or any fees, expenses, costs, taxes or charges in connection therewith).
What does this mean in garmento English???
Does this mean the Liz Claiborne is hurting??? Or doing well... This does not sound like good times to me. But maybe I am wrong. I hope they are doing well (I hope all fashion companies do well).
In response to the change by Standard & Poor's Ratings Services ("S&P") to the corporate credit rating of Liz Claiborne Inc. from a B- to CC, Andrew Warren, Chief Financial Officer of Liz Claiborne Inc., today made the following statement:
"S&P chose to issue a temporary technical downgrade when other leading rating agencies did not. S&P's downgrade is not a corporate rating downgrade in the traditional sense, but rather a required short-term technical action pertaining to the specific terms and conditions of our tender offer refinancing. Based upon past precedent, we anticipate that S&P is likely to restore our B- rating once we complete the cash tender offer for our Euro notes, which is scheduled to expire on April 5, 2011."
Mr. Warren also emphasized the following:
"The tender offer announced this week is expected to be followed by a new debt financing, and we anticipate that these actions will improve our capital structure and extend the weighted average maturity of our debt. Our liquidity remains solid and Liz Claiborne Inc. will continue to do business as usual."
You may also want to read the following article which is referenced above:
Liz Claiborne, Inc. Announces Tender Offer for Up to Euro 155,000,000 (March 8th Article regarding Liz Claiborne Tender Offer).
Learn more about Liz Claiborne Inc. on Apparel Search.
i'm not a wall street analyst ..by any means..
but this seems to be a way to curtail future bankruptcy proceedings.
the fact that the notes are being floated with a cut off date & time, apeears to be a last gasp and stopgap to keep this company afloat.
what liz claiborne company needs to do is shake off their 1970's image..and propel the company into this century.
their image is that of middle america & jcpenny.
they have lucky & juicy in their portfolio..brands which have peaked.
in fashion..timing is everything.
Liz Claiborne, Inc. on October 12, 2011 announced that it has entered into definitive agreements to sell its Liz Claiborne, Monet and Kensie brands, and has completed the sale of its Dana Buchman brand, for total cash proceeds of approximately $328 million, of which $308 million represents sale proceeds. The Company has also agreed with Donna Karan International to an early termination of its DKNY® Jeans and DKNY® Active license. Consummation of the Liz Claiborne, Monet and Kensie sale transactions is subject to customary closing conditions, and these transactions are expected to close in the fourth quarter of 2011.
Read the press release about Claiborne Inc. Selling Claiborne, Monet, and Kensie Brands.
Liz Claiborne Inc. (NYSE: LIZ) today announced it is changing its name to "Fifth & Pacific Companies" to better communicate its strategic focus on growing its three global lifestyle brands (Juicy Couture, kate spade and Lucky Brand) and reflect the sale of the Liz Claiborne namesake brand to J.C. Penney, among other recent transactions. The change is expected to be effective on or about May 15, 2012 at which time the Company will begin trading as Fifth & Pacific Companies, Inc. (NYSE: FNP).