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Fortune Brands raises tender offer to $1.05b

  • Anita Davis
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Consumer goods holding company Fortune Brands has raised a $1 billion debt tender offer to $1.05 billion due to oversubscription, The Wall Street Journal reported. The proceeds from the company's sale of golf equipment and apparel business Acushnet to a consortium led by Korean Sportwear maker Fila and Seoul-based Mirae Asset Private Equity will also be put towards the tender.

Fortune Brands, which owns spirits brands including Jim Bean and Sauza tequila, launched the debt tender offer last month. The notes from the offer have maturity deadlines between 2013 and 2036, with total outstanding principal amounting to approximately $2.5 billion. Fortune itself may purchase up to $550 million of the $950 million in the high-priority notes due 2016. The offer expires August 24.

Last month, Fila and Mirae, with The National Pension Service of Korea - the globe's fourth-largest pension fund - and the Korea Development Bank, Korea's largest government-owned bank, bought Acushnet from Fortune for $1.225 billion in cash, marking the top buyout transaction by Korean investors this year.

Fortune Brands estimates it will see $1.1 billion of net proceeds after taxes and expenses. This comes as Acushnet announced more than $1.2 billion in net sales in 2010 - 50% generated outside the US - and operating income, before charges, of $80 million.

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