Author Topic: Hasbro to Pay LFL $200 Million in Cash  (Read 568 times)

Offline Jeff

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Hasbro to Pay LFL $200 Million in Cash
« on: May 10, 2007, 10:08 AM »
I guess now we know why the price of the figures went up in 2007...  :P


From Hasbro:

Hasbro, Inc. (NYSE: HAS) announced today that it has exercised its call option to repurchase all of the outstanding warrants for Hasbro's common stock currently held by Lucasfilm Ltd. and Lucas Licensing Ltd. (together "Lucas").

Lucas holds exercisable warrants (the "Warrants") to purchase an aggregate of 15,750,000 shares of Hasbro's common stock. The call notice to Lucas stated that Hasbro is exercising its call option to repurchase all of the Warrants for $200 million in cash. Upon closing of the call option Lucas will not hold any warrants to purchase shares of Hasbro's common stock. Hasbro anticipates closing the call option on May 24, 2007. In connection with the repurchase, Hasbro will recognize a final mark to market charge related to these warrants totaling approximately $36.5 million during the 2nd quarter of 2007.

Pursuant to the Warrant Amendment Agreement, entered into between Hasbro and Lucas in January of 2003, Hasbro was given a call option which provided that at any time through October 13, 2016, Hasbro could repurchase all of the Warrants from Lucas for a payment, in Hasbro's choice, of either (i) $200 million in cash or (ii) $220 million worth of Hasbro's common stock, such stock being valued in the manner set forth in the Warrant Amendment Agreement.
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