Samsonite Corp., a luggage maker founded in 1910, said it received a loan of $530 million and will use the new funds to buy back some bonds and pay shareholders a dividend.
Denver-based Samsonite is offering to buy back 8.875 percent bonds due in 2011 with a face value of $165 million and 100 million euros ($128 million) of floating-rate notes due in 2010, the company said today in a statement. After converting preferred stock into common shares, the world’s biggest luggage maker plans to pay stockholders a dividend of $175 million.
Samsonite is planning to sell shares in London, where Chief Executive Officer Marcello Bottoli is based, according to a Securities and Exchange Commission filing in May. The shares already trade over-the-counter in the U.S. This year, Samsonite bought a majority stake in Lambertson Truex, a handbag and shoe designer.
The company posted a net loss of $5 million in the six months to July 31, compared with a profit of $2.6 million in the year-earlier period. Sales rose 6.3 percent to $468.9 million in the first half.
Samsonite is offering $1,088.75 in cash for each $1,000 of 2011 bonds and 1,020 euros for each 1,000 euros of 2010 floating rate notes, according to today’s statement.
