Market Overview

Textron Inc. Announces Its 4.5% Convertible Senior Notes Due 2013; Convertible at Holder's Discretion


Textron (NYSE: TXT)announced today that its 4.5% Convertible Senior Notes due 2013 (CUSIP #883203BN0) (the “Notes”) will be convertible at the option of the holders through December 31, 2012, the last day of the fourth calendar quarter, as provided in the Indenture, dated as of September 10, 1999, between Textron and The Bank of New York Mellon Trust Company, N.A., as Trustee, as supplemented by the Supplemental Indenture, dated as of May 5, 2009 (the “Indenture”).

The Notes will be convertible because Textron's common stock price exceeded the conversion threshold price of $17.06 per share (130 percent of the applicable conversion price of $13.125 per share) for at least 20 trading days during the 30 consecutive trading days ending September 28, 2012.

As a result, during the fourth calendar quarter, holders of the Notes may elect to convert some or all of their Notes. Whether the Notes will be convertible at any time after December 31, 2012 will depend on whether any of the conversion conditions specified in the Indenture are satisfied, including whether the price of Textron's common stock exceeds the conversion threshold price for the requisite number of trading days during subsequent quarters.

The Company may deliver shares of common stock, cash or a combination of cash and shares of common stock in satisfaction of its obligations upon conversion of the Notes.

Posted-In: News Financing


Related Articles (TXT)

View Comments and Join the Discussion!

Partner Center