LCI Industries today announced that it intends to offer $400 million in convertible senior bonds due in 2026 in a private placement to qualified institutional buyers.
In connection with the offering, the company said it expects to grant the initial purchasers of the bonds 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 million in aggregate principal amount of the bonds.
The bonds will be senior unsecured obligations of the company. Final terms of the bonds, including the initial conversion price, interest rate and certain other terms of the bonds will be determined at the time of pricing of the offering.
The bonds will be generally unsecured obligations of the company and will bear interest, payable semi-annually in arrears, and the notes will mature on May 15, 2026, 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 Jan. 15, 2026, noteholders may convert their bonds only upon the satisfaction of certain conditions and during certain periods. On or after Jan. 15, 2026, 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 bonds at any time.
In connection with the offering of the notes, the company said it expects to enter into privately negotiated convertible note hedge transactions with one or more financial institutions, which may include one or more of the initial purchasers or their respective affiliates.
The company intends to use a portion of the net proceeds from the offering to fund the cost of entering into the convertible note hedge transactions. The company intends to use the remainder of the net proceeds from the offering to repay outstanding borrowings under its revolving credit facility and for general corporate purposes.
If the initial purchasers exercise their option to purchase additional notes, then the company intends to use a portion of the additional net proceeds to fund the cost of entering into additional convertible note hedge transactions (after such cost is partially offset by the proceeds to the company from the sale of the additional warrant transactions).
