Atlanta, GA, Feb. 4--Interface, Inc. today announced the closing of its private offering of $135 million aggregate principal amount of 9 1/2% senior subordinated notes due in 2014 (the "2004 Notes").
The company previously announced its intention to issue $125 million of notes through this transaction, but elected to increase the size of the offering to $135 million in response to favorable market conditions.
Three investment banks participated as initial purchasers in the offering. The approximately $130.9 million of net proceeds from the sale of the 2004 Notes will be used to redeem the company's currently outstanding 9.5% senior subordinated notes due in 2005 (the "Called Notes") and to reduce borrowings under the company's revolving credit facility.
In connection with the closing, the company also announced its call of the Called Notes for redemption at a price equal to 100% of the principal amount of the Called Notes (which total $120 million), plus accrued interest to the redemption date. The redemption date for the Called Notes is March 5, 2004.
An aggregate of approximately $123.5 million, which includes interest that will accrue by the redemption date, will be required to redeem all of the Called Notes. Wachovia Bank, National Association (as successor in interest to First Union National Bank of Georgia), trustee in respect of the Called Notes, is processing the transmittal of the redemption notice to all holders of record of Called Notes.
The 2004 Notes were sold to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in reliance on Regulation S under the Securities Act. The 2004 Notes have not been registered under the Securities Act or any state securities laws. Therefore, the 2004 Notes may not be offered or sold in the United States absent registration under such laws or an applicable exemption from such registration requirements.
