American Greetings Announces Offering of Notes
CLEVELAND, June 20 /PRNewswire/ -- American Greetings Corporation
(NYSE: AM)
today announced that it is proposing to sell $250 million in senior
subordinated notes due 2008 and $125 million of convertible senior
subordinated notes due 2006, which will be convertible into the
company's Class A Common Stock. The company expects to grant the
initial purchasers an option to purchase up to an additional $25
million of the convertible senior subordinated notes. These offerings
would replace the company's previously
announced proposed sale of $400 million in senior subordinated notes.
The company expects to use the net proceeds from the offering to
repay existing indebtedness and for other general corporate purposes.
The company expects the offering to be issued in two separate private
placements and resold by the initial purchasers to qualified institutional
buyers in reliance on the Rule 144A. The securities have not been
registered under the Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable
exemption from such registration requirements.
About American Greetings
American Greetings is the world's largest publicly held creator,
manufacturer and distributor of greeting cards and social expression
products. Its staff of artists, designers and writers comprises
one of the largest creative departments in the world and helps consumers
"say it best" by supplying more than 15,000 greeting card designs
to retail outlets in nearly every English-speaking country. Located
in Cleveland, Ohio, American Greetings has annual sales of more
than $2.5 billion. For more information on the company, visit http://www.americangreetings.com/
on the World Wide Web.
The statements contained in this release that are not historical
facts are forward-looking statements. Actual results may differ
materially from those projected in the forward-looking statements.
These forward-looking statements involve risks and uncertainties,
including but not limited to: retail bankruptcies and consolidations,
successful integration of acquisitions, a weak retail environment,
consumer acceptance of products as priced and marketed, the impact
of technology on core product sales and competitive terms
of sale offered to customers.
|
