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).
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