In Brief: Playtex
This article was originally published in The Rose Sheet
Executive Summary
Playtex: Haas Wheat & Harrison Investment Partners will acquire 40% of Playtex' outstanding common stock with the completion of a definitive agreement whereby Playtex will sell the investment group 20 mil. shares of newly issued common stock for $9 per share. The $9 per share price represents a 20% premium over the average closing price of Playtex's common stock from March 1-16, Playtex notes, adding that the $180 mil. proceeds will be used to reduce senior debt. In association with the equity investment, Playtex and Haas Wheat have obtained a commitment from Chemical Bank for a $500 mil. senior credit package that "replace the existing bank debt at substantially reduced interest rates" and will give Playtex "in excess of $125 mil. of cash and available borrowing facilities." After the investment is completed, Haas Wheat Chairman Robert Haas is expected to become chairman of Playtex, replacing chairman and CEO Joel Smilow, who will assume the titles of chairman of the executive committee and director...