School Specialty to offer $125m of debentures


16 November 2006 — Greenville (WI): School Specialty intends to offer a $125 million principal amount of its convertible subordinated debentures, due 2026, to qualified institutional buyers.


In addition, the company has granted the initial purchaser an option to purchase up to an additional $25 million principal amount of the debentures.


The debentures are expected to be redeemable at School Specialty’s option on or after 30 November 2011. Holders of the debentures will have the right to require School Specialty to repurchase all or some of their debentures on specified dates and depending on certain criteria.


School Specialty also intends to repurchase up to $40 million of its common stock under its recently updated share repurchase programme.