AUBURN HILLS, Mich., Oct. 29 /PRNewswire-FirstCall/ -- Champion
Enterprises, Inc. (NYSE: CHB), a leader in factory-built construction,
today announced a proposed offering of $130 million aggregate principal
amount of convertible senior notes due 2037. The company intends to grant
the underwriter of the proposed offering an option to purchase up to an
additional $19.5 million aggregate principal amount of notes solely to
cover over- allotments. Credit Suisse Securities (USA) LLC will act as the
underwriter and sole bookrunning manager for the proposed note offering.
The interest rate, conversion rate, conversion price and other terms of
the notes will be determined at the time of pricing of the offering by
negotiations between the company and the underwriter. The offering is being
marketed with an expected conversion premium ranging from 73 percent to 77
percent above the current market price of the company's common stock.
Holders of the notes may require the company to repurchase the notes if the
company is involved in certain types of corporate transactions or other
events constituting a fundamental change. Beginning in 2012 the company
will have the right to redeem the notes, in whole or in part. Holders of
the notes have the right to require the company to repurchase all or a
portion of their notes on November 1 of each of 2012, 2017, 2022, 2027 and
2032.
The company intends to use the net proceeds of the notes offering to
repurchase its notes due 2009 tendered in a tender offer, repay a portion
of the outstanding principal under its term loan due 2012, pay related
fees, expenses and accrued interest, and for general corporate purposes.
The company has filed a preliminary prospectus supplement with the
Securities and Exchange Commission ("SEC") relating to the proposed public
offering of the convertible notes.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities, in any state or jurisdiction in which such offer, solicitation
or sale would be unlawful prior to the registration or qualification under
the securities laws of any such state or jurisdiction.
Champion Enterprises, Inc. has filed a registration statement
(including a prospectus and prospectus supplement) with the SEC for the
offering to which this communication relates. Before you invest, you should
read the prospectus (including the prospectus supplement) in that
registration statement and other documents Champion Enterprises, Inc. has
filed with the SEC for more complete information about Champion
Enterprises, Inc. and this offering. You may get these documents for free
by visiting EDGAR on the SEC web site at http://www.sec.gov. Alternatively,
Champion Enterprises, Inc., the underwriter or any dealer participating in
the offering will arrange to send you the prospectus and prospectus
supplement if you request them by calling Credit Suisse Securities (USA)
LLC toll free at 1-800-221-1037 or Champion Enterprises, Inc. toll free at
1-888-603-0071.
About Champion
Auburn Hills, Michigan-based Champion Enterprises, Inc., a leader in
factory-built construction, operates 32 manufacturing facilities in North
America and the United Kingdom working with independent retailers, builders
and developers. The Champion family of builders produces manufactured and
modular homes, as well as modular buildings for government and commercial
applications.
Forward Looking Statements
This news release contains, in addition to historical information,
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are based
on the company's current assumptions, expectations and projections about
future events. Words like "believe," "anticipate," "intend," "estimate,"
"expect," "project" and similar expressions are used to identify
forward-looking statements, although not all forward-looking statements
contain these words. These forward-looking statements are necessarily
estimates reflecting the best judgment of the company's senior management
and involve a number of risks and uncertainties that could cause actual
results to differ materially from those suggested by the forward-looking
statements.
Investors should consider the information contained in the company's
filings with the SEC, including its Annual Report on Form 10-K for the 2006
fiscal year, especially in the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and "Risk Factors" sections,
its most recent Quarterly Reports on Form 10-Q and its Current Reports on
Form 8-K. Other unknown or unpredictable factors also could have material
adverse effects on the company's future results, performance or
achievements. In light of these risks, uncertainties, assumptions and
factors, the forward-looking events discussed in this news release may not
occur. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated, or if
no date is stated, as of the date of this news release.
The company is not under any obligation and does not intend to make
publicly available any update or other revisions to any of the
forward-looking statements contained in this news release to reflect
circumstances existing after the date of this news release or to reflect
the occurrence of future events even if experience or future events make it
clear that any expected results expressed or implied by those
forward-looking statements will not be realized.
SOURCE Champion Enterprises, Inc.
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Related links:
http://www.championhomes.com
http://www.prnewswire.com/comp/110861.html /
CONTACT:
Laurie Van Raemdonck, Vice President,
Investor Relations, +1-248-340-7731,
lvanraemdonck@championhomes.net, Phyllis Knight, Executive Vice
President and CFO, +1-248-340-9090, both of Champion Enterprises,
Inc.
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