Kellwood Co. has begun a cash tender offer for up to $60 million aggregate principal amount of its 7.875 percent notes due 2009. It plans to use a portion of the proceeds from the sale of the Smart Shirts business, which it completed this week for $162 million.
The tender offer expires at midnight EDT on Wednesday, Feb. 6, unless extended or terminated earlier.
Pressure has been mounting on the St. Louis apparel firm since private equity firm Sun Capital Securities Group – Kellwood’s second-largest shareholder with a 9.9 percent stake – issued and then reissued an unsolicited bid for the apparel company last fall. Kellwood twice turned down the $21-a-share offer, saying it undervalued the company.
For more, see Thursday’s issue of WWD.