Fleetwood Completes $287.5 Million Private Placement
10 February 1998
Fleetwood Completes $287.5 Million Private PlacementRIVERSIDE, Calif., Feb. 10 -- Fleetwood Enterprises, Inc. , the nation's leading producer of manufactured housing and recreational vehicles, today reported that it has completed a private placement of $287.5 million of convertible trust preferred securities by way of a subsidiary trust. The sole asset of the trust will be Fleetwood Enterprises, Inc. convertible subordinated debentures due 2028. The preferred securities will be entitled to quarterly cash distributions at an annual rate of 6.0 percent of the $50 liquidation preference and convertible into Common stock of Fleetwood at the rate of 1.02627 shares of Common stock for each preferred security (equivalent to a conversion price of $48.72 per share of Common stock). The Company will apply $176.9 million of the proceeds of the preferred securities to purchase 5.2 million shares of Fleetwood Common stock from John C. Crean, Fleetwood's founder and retired Chairman of the Board. The remaining net proceeds will be used for general corporate purposes, which may include funding a portion of the Company's capital commitment to its participation in the manufactured housing retail business. The securities were placed pursuant to Rule 144A and Regulation S under the Securities Act of 1933. The securities placed 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 registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities, nor shall there be any sale of securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state. SOURCE Fleetwood Enterprises, Inc.