LCI Industries announced that it intends to offer, subject to market conditions and other factors, $400.0 million in aggregate principal amount of convertible senior notes due 2030 in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In connection with the offering, the company expects to grant the initial purchasers of the notes an option to purchase, within a 13-day period from and including the date on which the notes are first issued, up to an additional $60.0 million in aggregate principal amount of notes. The company also announced that it is launching a proposed senior secured Term Loan B due 2032 in an aggregate principal amount of $400.0 million.
Notes Offering
The notes will be general unsecured, senior obligations of the company. Final terms of the notes, including the initial conversion price, interest rate and certain other terms of the notes will be determined at the time of pricing of the offering. The notes will bear interest, payable semi-annually in arrears, and the notes will mature on March 1, 2030, unless earlier converted, redeemed or repurchased in accordance with their terms prior to such date. Prior to the close of business on the business day immediately preceding Nov. 1, 2029, noteholders may convert their notes at their option only upon the satisfaction of certain conditions and during certain periods. On or after Nov. 1, 2029 until the close of business on the second scheduled trading day immediately preceding the maturity date, noteholders may convert all or any portion of their notes at any time.
The company will settle conversions by paying cash up to the aggregate principal amount of the notes to be converted and paying or delivering, as the case may be, cash, shares of the company’s common stock or a combination of cash and shares of the company’s common stock, at its election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the notes being converted, based on the then applicable conversion rate. Noteholders will have the right to require the company to repurchase for cash all or any portion of their notes at 100% of their principal amount, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes.
To view the full details about the notes offering, click here.
