2012-12-14 22:03:14 -
Harbinger Group Inc. Announces Pricing of Its $700 Million Senior Secured Notes
NEW YORK -- December 14, 2012 -- Harbinger Group Inc. (NYSE: HRG) (the
"Company") announced that on December 14, 2012, it priced an offering of $700
million aggregate principal amount of its 7.875% senior secured notes due 2019
(CUSIP No.: 41146A AD8 / ISIN: US1146AAD81 (Rule 144A) and CUSIP No.: U24520 AC9
/ ISIN: USU24520AC91 (Regulation S)). The notes were priced at 99.362% of par
with a coupon of 7.875%, plus accrued interest from December 24, 2012. The
notes will mature on July 15, 2019; provided that unless the Company has
redeemed, repurchased, otherwise retired or converted all of the Company's
outstanding existing preferred stock on or prior to May 13, 2018, then the notes
will mature on May 13, 2018.
The offering is expected to close on or about
December 24, 2012. The Company expects to use the net proceeds from the
issuance of the notes to refinance its existing 10.625% senior secured notes due
November 15, 2015 and for working capital by it and its subsidiaries and for
general corporate purposes, including the financing of future acquisitions and
businesses.
The notes were offered to qualified institutional buyers pursuant to Rule 144A
under the Securities Act of 1933, as amended (the "Securities Act") and to
persons outside the United States under Regulation S of the Securities Act.
The notes offered in this offering have not been registered under the Securities
Act or any state securities laws and, unless so registered, may not be offered
or sold in the United States except pursuant to an applicable exemption from the
registration requirements of the Securities Act and applicable state securities
laws.
This press release does not constitute an offer to sell or a solicitation of an
offer to buy the notes, nor shall there be any offer, solicitation or sale of
any notes in any jurisdiction in which such offer, solicitation or sale would be
unlawful.
Forward Looking Statements
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
1995: Some of the statements contained in the Press Release and certain oral
statements made by our representatives from time to time regarding the matters
discussed herein are or may be forward-looking statements. Such forward-looking
statements are based upon management's current expectations that are subject to
risks and uncertainties that could cause actual results, events and developments
to differ materially from those set forth in or implied by such forward-looking
statements. These statements and other forward-looking statements made from
time-to-time by HGI and its representatives are based upon certain assumptions
and describe future plans, strategies and expectations of HGI, are generally
identifiable by use of the words "believes," "expects,"
"intends,"
"anticipates," "plans," "seeks," "estimates,"
"projects," "may" or similar
expressions. Factors that could cause actual results, events and developments to
differ include, without limitation, the risk that closing of the acquisition of
the residential hardware and home improvement business of Stanley Black &
Decker, Inc. and certain of its subsidiaries by Spectrum Brands, Inc. or HGI
Energy Holdings, LLC's joint venture transaction with EXCO Resources, Inc.
("Energy Transaction") to create a private oil and gas limited partnership (the
"Partnership") will not occur, will be delayed or will close on terms materially
different than expected, including, in the case of the Energy Transaction,
(i) as a result of title and environmental diligence of properties to be
acquired, commodity price risks, drilling and production risks, (ii) financing
plans for the Partnership and the Energy Transaction, (iii) reserve estimates
and values, statements about the Partnership's properties and potential reserves
and production levels. Other factors could cause actual results, events and
developments to differ include, without limitation, the ability of HGI's
subsidiaries (including, following the closing of the Energy Transaction, the
Partnership) to generate sufficient net income and cash flows to make upstream
cash distributions, capital market conditions, that HGI may not be successful in
identifying any suitable future acquisition opportunities, the risks that may
affect the performance of the operating subsidiaries of HGI and those factors
listed under the caption "Risk Factors" in HGI's most recent Annual Report on
Form 10-K, filed with the Securities and Exchange Commission. All forward-
looking statements described herein are qualified by these cautionary statements
and there can be no assurance that the actual results, events or developments
referenced herein will occur or be realized. HGI does not undertake any
obligation to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to future
operation results.
About Harbinger Group, Inc.
Harbinger Group Inc. ("HGI"; NYSE: HRG) is a diversified holding company. HGI's
principal operations are conducted through subsidiaries that offer life
insurance and annuity products, and branded consumer products such as batteries,
personal care products, small household appliances, pet supplies, and home and
garden pest control products. HGI is principally focused on acquiring
controlling and other equity stakes in businesses across a diversified range of
industries and growing its existing businesses. In addition to HGI's intention
to acquire controlling equity interests, HGI may also from time to time make
investments in debt instruments and acquire minority equity interests in
companies. Harbinger Group Inc. is headquartered in New York and traded on the
New York Stock Exchange under the symbol HRG. For more information on HGI,
visit: www.harbingergroupinc.com.
Contacts
Investors:
Harbinger Group Inc.
Investor Relations
Tara Glenn
212-906-8560
investorrelations@harbingergroupinc.com
Media:
Jamie Tully/Michael Henson
Sard Verbinnen & Co
212-687-8080
Source: Harbinger Group Inc.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Harbinger Group Inc. via Thomson Reuters ONE
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