Roanoke Times Copyright (c) 1995, Landmark Communications, Inc. DATE: THURSDAY, June 21, 1990 TAG: 9006210198 SECTION: BUSINESS PAGE: B-5 EDITION: METRO SOURCE: The New York Times DATELINE: LENGTH: Short
Prices of some of the company's "junk bonds" soared Wednesday as investors speculated that RJR or Kohlberg, Kravis would buy back some of the debt.
The company provided sketchy details about its plans after a report about it appeared Wednesday in The Wall Street Journal.
In the statement, RJR said that "subject to certain conditions," Kohlberg, Kravis would inject $1.7 billion in common stock into the company "at the time" it resets the interest rate on two bond offerings issued as part of the buyout.
In addition to the $1.7 billion of equity, people who have seen the terms of the proposed refinancing said RJR hopes to raise about $2.2 billion in new bank loans and exchange about $1.5 billion in preferred stock for outstanding bonds.
by CNB