Newell Rubbermaid's Capital Structure Optimization Plan
- Client: Newell Rubbermaid Inc.
- Date: August - September 2010
- Location: Atlanta, Georgia
Summary:
Schiff Hardin assisted longtime client Newell Rubbermaid with the planning and successful execution of a capital structure optimization plan.
The plan included four carefully orchestrated transactions:
- An accelerated stock buyback plan with Goldman, Sachs & Co. for $500 million of Newell Rubbermaid common stock;
- The issuance of $550 million of senior notes due 2020;
- A cash tender offer for a series of high coupon notes; and
- An exchange of newly issued common stock and cash for in-the-money convertible senior notes and the unwind of a related call spread.
The plan was designed to simplify the client's capital structure and reduce its interest expense.
The series of complicated transactions showcases Schiff Hardin's deep experience in securities offerings, tender offers and exchange offers. Over the course of the representation, Schiff Hardin played a fundamental role in navigating the securities laws. The transactions drew upon the expertise of, and careful coordination among, lawyers from a wide variety of practice areas, including corporate and securities, financial derivatives, market regulation and tax.