DOW JONES NEWSWIRES
Textron Inc. (TXT) boosted its note offering by 80% and its
share offering by 8.9% as the defense contractor and aircraft maker
looks to increase liquidity.
Textron, which makes Bell helicopters and Cessna jets, has been
battling a slump in orders for business jets and canceled defense
contracts. In recent months, the company has said it would cut 14%
of its work force and shut most of its commercial-finance business
amid unstable credit markets.
The stock and bond offerings come on top of Textron's 91%
dividend cut and the drawing down of the balance of its $3 billion
committed credit line in February.
Textron expects proceeds of about $757 million from the stock
and bond offering, compared to its initial expectation for about
$500 million on Tuesday. Proceeds' uses will include debt
repayment.
The company priced 20.7 million shares at $10.50 apiece, a 2.9%
discount to Wednesday's closing price. Shares are up 3.6% at $11.20
in premarket trading.
It also agreed to sell $540 million of four-year convertible
senior notes. The notes aren't redeemable before maturity.
Tuesday, Textron reported first-quarter net income fell 63% on a
sharp drop in sales and weakness at several of its units. It also
lowered its full-year outlook.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com