Icahn to sell $2B in new debt; opens tender offers

AP News
Posted: Dec 30, 2009 5:27 PM

Icahn Enterprises LP, billionaire Carl Icahn's investing vehicle, on Wednesday said it will sell $2 billion of new senior debt securities in a private placement.

The money will be used to refinance existing debt, for related fees and for general corporate purposes.

In a related move, the company commenced tender offers on the series of notes the new funds will pay off.

Icahn will be buy any and all of $967 million outstanding aggregate principal amount of its 7.125 percent senior notes due 2013 and $353 million outstanding of its 8.125 percent senior notes due 2012.

In connection with the tender offers, Icahn Enterprises is seeking consents to change the terms of the notes, eliminating most of the restrictive covenants and amending other provisions. Holders who consent to the proposed amendments will be obligated to tender their notes.

Shares of Icahn Enterprises gained 90 cents, or 2.4 percent, to close at $38.50.