Invacare Corp. (Opens in a new window) (NYSE:IVC (Opens in a new window)) is offering to buy back $146 million-worth of senior notes that come due in 2015 in a continuing effort to reduce its load of high-cost debt.
The Elyria, Ohio, maker of home health care products issued $175 million-worth of the notes, which pay 9.75 percent interest each year, in early 2007 as part of a $710 million debt refinancing.
At the time, Invacare was doing its second wave of job cuts and plant closures in an effort to regain its financial footing. The company had fought falling reimbursements from Medicare and rising competition from inexpensive foreign imports for nearly two years.
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Invacare has since regained its profitability. But until the company can pay down its high-yield debt, it is unlikely to do acquisitions, Chairman A. Malachi Mixon told investors this spring (Opens in a new window).
So Invacare is offering to pay $1,045 per $1,000 note until Nov. 1. Sellers who tender their shares by Oct. 15 will get an additional $30 “consent payment,” or $1,075 per $1,000 note.
BofA Merrill Lynch (Opens in a new window) is the exclusive dealer manager and solicitation agent for the offer.