AlphaNinja - This financing is notable in a bad way.
Brunswick (BC) gave us a peek at how troubled things are in their world, as they raised $350million in debt at a yield well above the 11.25% coupon (annual interest). The $350million raised was $100million above what was previoulsy planned -->> further diluting the ownership stake of equity (common stock) owners. In fariness to Brunswick, they don't have a lot of options - just pointing out that it's tough to earn a return ON capital when said capital costs over 12%.
LAKE FOREST, Ill., Aug. 11 /PRNewswire-FirstCall/ -- Brunswick Corporation (NYSE: BC - News) announced today that it has priced an offering of $350 million aggregate principal amount (increased from $250 million, previously announced) of 11.25 percent senior secured notes due 2016 at an issue price of 97.036 percent.
The new notes will be secured by first-priority liens on Brunswick's headquarters and domestic retail bowling centers it owns, and by second-priority liens on substantially all of the assets that secure Brunswick's existing senior secured revolving credit facility on a first-priority lien basis.