Lehman Brothers Collection - Contemporary Business Archives

Harvard Business School Baker Library Historical Collections

Lehman Brothers Collection

Twentieth-Century Business Archives

Amax Holdings, Inc. (aka American Metal Climax) Deal - Lehman Brothers Collection

Amax Holdings, Inc. (aka American Metal Climax)

Company DealAmax Holdings, Inc.: 6 1/4% guaranteed sinking fund debentures due June 1, 1982 (unconditionally guaranteed by American Metal Climax, Inc.)
Transaction Typesinking fund debentures
Deal DescriptionThe outstanding capital stock of AMAX Holdings, Inc., ("Holdings") was wholly owned by American Metal Climax, Inc., ("Amax") and consisted of ten shares of common stock. Amax proposed to purchase, prior to the issue of Holdings' guaranteed sinking fund debentures being offered, additional common stock for cash or other property in order to increase its total equity investment in Holdings. The remainder of the capitalization of Holdings was to initially consist of the debentures. At the date of the offering prospectus, Holdings had not engaged in any activities other than those incident to its formation and the authorization of the issue of the debentures. Holdings was formed by Amax for the purpose of making investments in, including loans to, Amax's foreign subsidiaries and associated companies and other foreign companies around the world. No specific investments or loans were authorized by the Board of Directors of Holdings, but Holdings intended to ultimately invest these funds in foreign companies in which Amax and/or Holdings own or will own, directly or indirectly, stock having 10% or more of the total combined voting power of all classes of stock, by acquiring debt obligations or stock of such companies. The proceeds of the debentures may be invested temporarily until permanent investments are made and, from time to time thereafter in connection with a change in permanent investments, in short-term investments outside of the United States.
Harvard Business School Harvard Business School Baker Library Histrorical Collections