lexmark To Pays Back $350M, Then Wants to Borrow $ 400M?

[Anonymous]

lexmark To Pays Back $350M, Then Wants to Borrow $ 400M?

Lexmark announces redemption of notes

LEXINGTON, Ky., March  2013 —– Lexmark International, Inc. (NYSE: LXK) announced today that it will redeem for cash all of its outstanding 5.900% Senior Notes due 2013 (the "Notes") on March 31, 2013, at a redemption price equal to the sum of 100% of the principal amount outstanding, a make-whole premium, which will be calculated three business days prior to the redemption date in accordance with the Indenture (as defined below), and accrued and unpaid interest on the principal amount being redeemed to, but not including, the redemption date.

The Notes were issued under an Indenture dated May 22, 2008, as supplemented (the "Indenture"), by and between Lexmark and The Bank of New York Mellon Trust Company, N.A., as trustee.

As of Feb. 28, 2013, $350 million aggregate principal amount of Notes remained outstanding. On and after the date of redemption, the Notes will no longer be deemed outstanding, interest will cease to accrue, and all rights of the holder of the Notes will cease to exist, except for the right to receive the redemption price, without interest.

The notice of redemption containing information required by the Indenture was sent to registered holders of the Notes today. In accordance with the instructions specified in the notice of redemption, Notes are to be surrendered to The Bank of New York Mellon Trust Company, N.A., as trustee and paying agent, in exchange for payment of the redemption price, which will be paid on April 1, 2013, as provided in the Indenture.

http://newsroom.lexmark.com/2013-02-28-Lexmark-prices-400-million-debt-offering
Lexmark prices $400 million debt offering

LEXINGTON, Ky., March 2013– Lexmark International, Inc. (NYSE:  LXK) announced that it priced yesterday a registered public debt offering of $400 million in aggregate principal amount of its 5.125% Senior Notes due 2020. The seven-year unsecured senior notes will have an effective yield to maturity of 5.125% and will mature March 15, 2020. The offering is subject to customary closing conditions and is expected to close on March 4, 2013.

Lexmark intends to use a portion of the net proceeds from the offering to redeem its 5.90% Senior Notes, which mature on June 1, 2013, and the remaining net proceeds will be used for general corporate purposes, including to repay other debt, finance capital expenditures and operating expenses, fund share repurchases, fund dividends, finance acquisitions, and invest in any subsidiaries.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are joint book-running managers for the debt offering.

Information About the Offering

Lexmark has filed a registration statement (including a prospectus) with the Securities and Exchange Commission ("SEC") for the offering referred to in this press release.  Before you invest, you should read the prospectus in that registration statement and other documents the company has filed with the SEC for more complete information about Lexmark and the offering. You may get these documents for free by visiting EDGAR on the SEC website at http://www.sec.gov. Alternatively, Lexmark, any underwriter or any dealer participating in the offering will arrange to send the prospectus if you request it by calling J.P. Morgan Securities LLC collect at 1-212-834-4533 or Citigroup Global Markets Inc. toll-free at 1-800-831-9146.

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March 5, 2013 at 8:47 AM