Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

The International Silver Company Deal - Lehman Brothers Collection

The International Silver Company

Company DealThe International Silver Company; $35,578,700 5% convertible subordinated debentures due January 1, 1993
Transaction TypeConvertible Subordinated Debentures
Deal DescriptionThe International Silver Company used the a portion of the proceeds from this transaction to retire substantially all of its bank loans. The balance remaining was added to working capital. As a consequence of this financing, the only outstanding indebtedness of the company was the debentures and the company was therefore in a stronger position to continue its acquisition program. The bank loans repaid by the company were incurred to finance the purchase of common stock of Taylor Publishing Company in connection with the merger of Taylor Publishing Company into the company, to prepay mortgage notes owed by Taylor Publishing Company at the time of the merger, to purchase silver for inventory, to finance construction of a new plant in Meriden, Connecticut and for other capital expenditures, and to refinance existing bank loans. The remainder of the indebtedness was used for the payment of taxes and other corporate purposes.
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