Print
Email
Print Edition StoriesThursday, April 30, 2009
Textron cuts more jobs, raising $757M in notes sale
By Mass High Tech Staff
Terrafugia Transition First Flight
Interactive map of Greater Boston tech layoffs in 2009
Defense and aerospace conglomerate Textron Inc. has priced a public offering of convertible senior notes and common stock from which it hopes to raise approximately $757 million. At the same time, the Providence, R.I.-based company has reportedly decided to ramp up its job cuts by an additional 2,100 jobs.
Under the offering, which should close May 5, Textron (NYSE: TXT) agreed to sell 20.7 million shares of common stock for $10.50 per share. Textron has also granted the underwriters a 30-day option to purchase an additional 3.15 million more shares of common stock.
Textron has also agreed to sell $540 million worth of convertible senior notes due May 1, 2013.
The additional job cuts, which amount to about 5 percent of Textron’s worldwide work force, brings the total of recent cuts to about 8,300, or approximately 20 percent of Textron’s global staffing levels.
In February, Textron reported it is selling its HR Textron operating unit within its Textron Systems segment, to Woodward Governor Co. for $365 million in cash. HR Textron makes mission-critical hydraulic and electric actuation systems and products for aircraft, guided weapons, armored vehicles and turbine engines. Its products are used in the F-35 Joint Strike Fighter, X-45 unmanned combat air vehicle (UCAV), Joint Direct Attack Munition (JDAM) and AIM-9-X Sidewinder programs, as well as the U.S. M1 Abrams Main Battle Tank.
Textron reported a 2008 net income of $486 million on revenue of $14.2 billion.
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
RSS Feeds
