Fleetwood Enterprises Inc. announced today (Jan. 7) that it completed an exchange of debt securities intended to enhance liquidity and improve its balance sheet by increasing shareholders’ equity.
Improving its balance sheet also gives Fleetwood the capacity to carry more senior debt, according to the company.
The debt securities swap actually was completed at 5 p.m. Eastern Time on Friday (Jan. 4). Fleetwood exchanged $86.25 million in 6% convertible trust securities, due Feb. 15, 2028, for $37.95 million in 9.5% convertible trust securities due Feb. 15, 2013.
The conversion price for the securities is $12.56, which represents a 15% premium over the daily volume-weighted average of Fleetwood’s common stock for the five stock market trading days ended Dec. 27.