LOS ANGELES Greenbrier
Cos. is retiring $52.9 million of its outstanding convertible
The move is part of
Greenbriers overall program of "strategic initiatives"
designed to raise its gross profit margins by 2 percent and
reduce the capital employed in its operations by at least $100
million by the close of its fiscal year ending Aug. 31,
The notes represent the majority
of Greenbriers $67.7 million in outstanding 2.375-percent
convertible senior notes due 2026, the Lake Oswego, Ore.-based
manufacturer and refurbisher of railroad freight cars said.
Greenbrier will use cash
generated from operations and borrowings on its existing
revolving credit facilities to purchase the notes.
The company it intends to
"redeploy this liberated capital" in new opportunities, to pay
down debt or to return to shareholders, it added.
Greenbrier late last year fended
off a $597-million takeover attempt by investor Carl
Icahns American Railcar Industries Inc., St. Charles, Mo.
amm.com, Dec. 28).