Fitness financials: Brunswick's buyback proceeds add up to $165 million, plus Life Time Fitness, Amer Sports
Brunswick Corp. said that it has $165 million worth of proceeds remaining after buying back company notes due 2013, while Life Time Fitness said its shares fell on downgrade, and Amer Sports hired its first-ever chief development officer.
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Brunswick’s buyback proceeds add up to $165 million
After buying back company notes due 2013 with proceeds from a debt sale, Brunswick Corp. (NYSE: BC), parent of Life Fitness and Hammer Strength, said that it has $165 million worth of proceeds remaining.
After Brunswick’s tender offer for up to $75 million of its outstanding 11.75-percent notes due 2013, holders of about $12 million worth sold back their bonds.
Brunswick accepted and paid for the notes using proceeds from its recently completed offering of $350 million worth of senior secured notes due 2016.
After retiring $149 million of 2011 notes and the $12 million of 2013 notes, Brunswick has about $165 million remaining from the debt sale remaining.
The company said the remaining proceeds might fund intermediate and long-term financial obligations, including additional long-term debt retirements or pension funding, reducing short-term borrowings, or supplementing its liquidity.
Life Time Fitness shares fall on downgrade
Shares of Life Time Fitness (NYSE: LTM) dropped Oct. 2 after an analyst said near-term membership acquisition will be challenging and downgraded the stock.
Oppenheimer analyst Brian Nagel wrote in a note to investors that the company’s earnings will likely be pressured because there are indications membership acquisition for the chain “might have recently turned more challenging.”
He wrote, “Moderating new member sign-ups together with waning expense control opportunities are likely to weigh on the ability of Life Time Fitness to deliver meaningful earnings per share upside in coming quarters.”
He downgraded the company to “perform” from “outperform.”
Shares fell as much as $4.71 in day’s trading and closed at $26.04 on Oct. 2 on a volume of 2.6 million shares. In the last 52 weeks, the stock has traded between $7.07 and $34.
Amer Sports hires first-ever chief development officer
To strengthen Amer Sports’ management in strategic planning and execution, it said it has named Antti Jaaskelainen as the company’s chief development officer. It is a newly created position and he will start on Dec. 1.
Jaaskelainen is joining Amer Sports from Stora Enso Group, where he currently works as senior vice president and head of the biorefining unit and previously served in those positions in group strategy. He has also worked at McKinsey & Company and at Nokia.
Jaaskelainen also will be a member of the company’s executive board.
–Compiled by Wendy Geister
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