Business Notes

By Staff On Apr 4 2005 - 6:00am

Sirius In $250 Mil. Offering To Redeem Higher Interest Rate Notes

New York— Sirius Satellite Radio is offering $250 million in aggregate principal amount of senior notes due in 2015. The company plans to use about $63.1 million of the net proceeds from the offering to redeem all of its outstanding 15 percent senior secured discount notes due in 2007 and 14.5 percent senior secured notes due in 2009. The balance will be used to pay the expenses of the offering and for general corporate purposes. Based upon current plans, prior to gaining the offering proceeds, Sirius said it has sufficient cash on hand to cover estimated funding needs through cash flow breakeven, which is expected to take place in 2007.

Rayovac Powers Up Selection With Pet-Food Maker Purchase

Atlanta— Rayovac isn't just batteries anymore, with the company currently expanding beyond its mainstay battery/charger line-up. In addition to already having acquired a shaving and grooming products maker and a lawn, garden and pet products supplier, Rayovac now is purchasing Germany's Tetra, a manufacturer, distributor and marketer of food, equipment and care products for home-kept fish and reptiles. Tetra, which has about $267 million in annual sales, will team with Rayovac's United Pet Group as part of the company's pet products stable. Purchase price was $554.9 million. This means Rayovac will become the world's largest maker of pet supplies, said David Jones, chairman/CEO, “a position with which we can leverage our company's worldwide operations, supply chain and information systems infrastructure to better meet the needs of our global retailer customers.”

Kodak Restates 2003-04 Earnings, Closes Paper Plant

Rochester, N.Y.— Eastman Kodak is restating earnings for the first three quarters of 2004 and all quarters in 2003 in order to correct accounting errors related to income taxes, pensions and retirement benefits. Kodak said these were not irregularities, but simply accounting errors, and that there would be no material revenue impact. Kodak said it will revise results for the fourth quarter of 2004, reducing 2004 net earnings by $21 million. It also said a paper plant closing here would play a key role in about $50 million in restructuring charges.

Gateway Initiates Resale Of Senior Convertible Notes

Irvine, Calif.— Gateway has filed a resale registration statement with the Securities and Exchange Commission relating to $150 million of its 1.50 percent senior convertible notes, due 2009; $150 million of its 2 percent senior convertible notes, due 2011; and the shares of Gateway common stock, which can be issued upon conversion of the notes. Gateway had received about $291 million in proceeds from the initial sale of the notes, but will not receive any proceeds from the resale of the securities under the registration statement.

OfficeMax Announces Tender Offer To Repurchase 23.5 Mil. Shares

Itasca, Ill.— OfficeMax has initiated a modified “Dutch auction” tender offer to purchase up to 23.5 million shares of its outstanding common stock, at a price between $30 and $34 per share. The aggregate purchase price is up to $799 million, while the offer represents about 25 percent of the current outstanding shares of stock. The retailer said the tender offer is an element of its overall plan to change its business focus and to return excess capital to its shareholders. It expires April 28.