Cannondale owner Dorel Industries Inc has secured new long-term financing. The company has bolstered its cash reserves by issuing US$50 million of Series "A" Senior Guaranteed Notes and US$150 million of Series "B" Senior Guaranteed Notes. These shall bear interest at 4.24% and 5.14%, respectively.
Dorel has yet to confirm its plans for the financing beyond usual working capital requirements. Upon confirmation yesterday that it had raised US$200 million from the sale of the guaranteed notes, Dorel’s shares reportedly ended the day’s trading 0.10% higher.
The Notes were purchased by a group of institutional investors including Prudential Capital Group, an institutional investment business of Prudential Financial Inc. The principal repayment of the Series "A" Senior Guaranteed Notes is due in April 2015; whereas the principal repayments of the Series "B" Senior Guaranteed Notes begin in April 2013 with the final payment due in April 2020.
