Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Cluett, Peabody & Co., Inc. Deal - Lehman Brothers Collection

Cluett, Peabody & Co., Inc.

Company Deal$12,595,200 4 1/4% convertible subordinated debentures due September 15, 1984
Transaction TypeConvertible Subordinated Debentures
Deal DescriptionCluett, Peabody & Co., Inc., applied the net proceeds from this transaction to the repayment of short-term indebtedness, thereby providing the company with additional working capital. The company's requirements for funds increased in the years prior to the deal as a result of carrying additional inventories and receivables attributable to an expanded volume of sales and to the company's entry into the retail apparel field, and as a result of an increased capital expenditure program. At the time of the deal, the company was making, and planned to make in 1965, substantial capital expenditures for the modernization and expansion of the manufacturing facilities of the Arrow Company, a division, and J. Schoeneman, Inc., a subsidiary, and for the modernization of existing retail stores and the opening of new stores by the retail stores division.
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