Newell Rubbermaid Inc. (NWL) said its debt-repurchase effort
would total $325 million, 8.3% higher than previously planned, as
the company detailed final results of its tender offers for notes
maturing this year and next.
The move comes as the company offered $250 million in senior
notes late last month as it looked to raise cash and pay down debt.
Newell Rubbermaid, which makes brands like Sharpie and Paper Mat,
cut its quarterly dividend by 52% last month in another cost-saving
move. It had already cut its dividend in half in January to try to
protect its investment-grade rating.
It has $750 million in debt maturing in the second half of this
year, including $180.1 million of notes to be repurchased as part
of the tender. Another $144.9 million of notes maturing next year
will be bought after $201.8 million were tendered.
In February, Standard & Poor's Ratings Services and Moody's
Investors Service cut their ratings on the company to the brink of
junk territory amid Rubbermaid's slumping results. First-quarter
figures are due to be released April 30.
Shares closed Thursday at $7.45 and haven't traded premarket.
The stock has rebounded somewhat in the past month but has still
lost two-thirds of its value in the last year.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com