USA: Cone Mills Announces Exchange Offer
Cone Mills Corporation (NYSE: COE) today announced it has filed with the Securities and Exchange Commission an offer to exchange up to $15m of its common stock at representative market value to be set by the executive committee, or up to $85m of new 11 per cent secured subordinated debentures, due March 15, 2005, along with ten shares of its common stock, per $1,000 face amount debenture for up to $100m of its outstanding 8-1/8 per cent debentures, due March 15, 2005, at full principal amount. This transaction is conditioned upon the holders of 8-1/8 per cent debentures consenting to amend certain terms of the 8-1/8 per cent indenture regarding permitted liens on company assets so that the Company can put into place a debt structure that allows the company to begin building a new denim facility in Mexico before year-end.According to John Bakane, CEO of Cone Mills: "Last year, in our revitalization plan, we promised that Cone would take decisive action first to restructure itself and then to resume growth through a second planned denim expansion in Mexico following the success of the Parras Cone plant. Now that the 1999 restructuring of operations has been completed and our site in Tamaulipas, Mexico is being prepared, we are making this exchange offer to facilitate the financing of our new denim facility."Cone Mills is the largest denim producer in the world, largest commission finisher of home furnishings fabrics in North America, and a leading supplier of woven and printed fabrics for the upholstery and decorative markets.
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