This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Textron Inc. Confirms Settlement Method Of Its 4.5% Convertible Senior Notes Due May 1, 2013

Textron Inc. (NYSE: TXT) (“Textron”) confirmed today that, as previously announced, it will settle the Conversion Obligation of its 4.5% Convertible Senior Notes due May 1, 2013 (CUSIP #883203BN0) (the “Notes”) with a combination of cash and shares of Common Stock.

Pursuant to the terms of the Indenture, dated as of September 10, 1999, between Textron and The Bank of New York Mellon Trust Company, N.A., as Trustee, as supplemented by the Supplemental Indenture, dated as of May 5, 2009 (the “Indenture”), the Notes are currently convertible at the holder’s discretion and will remain convertible through the close of business on April 29, 2013, the second trading day preceding their May 1, 2013 maturity date.

The Company will satisfy the Conversion Obligation with a combination of cash and Common Stock by delivering to each converting Holder, for each $1,000 principal amount of Notes converted: (A) $1,000 per $1,000 principal amount of the Notes or, if lower, the Conversion Value in cash (the “ Fixed Cash Amount”) and (B) a number of shares of Common Stock equal to the sum, for each of the forty-five (45) Settlement Period Trading Days in the Settlement Period, of 1/45th of (a) the Conversion Rate then in effect minus (b) the quotient of (x) the Fixed Cash Amount divided by (y) the Volume Weighted Average Price (VWAP) of the Common Stock on that Settlement Period Trading Day (plus cash in lieu of fractional shares, if applicable, as set forth in Section 9.02(i)) of the Indenture).

Notes submitted for conversion prior to the close of business on the April 15, 2013 record date will not be entitled to receive accrued interest payable on the May 1, 2013 maturity date.

In order to exercise the conversion right with respect to the Notes, a Holder of the Notes must complete a Conversion Notice pursuant to Section 9.02 of the Indenture and deliver such notice to the Conversion Agent at the following address for receipt prior to the close of business on April 29, 2013:

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs