Steinway Musical Instruments announces $27.2 million private placement with Samick Musical Instruments

Steinway Musical Instruments, Inc., a US-based design, manufacturer and marketer of high quality musical instruments, has signed an agreement with Samick Musical Instruments Co., Ltd. for private placement of 1.7 million shares of ordinary common stock at $16 per share. Steinway will raise gross proceeds of $27.2 million through this placement.

In addition, Samick also granted the right to buy by March 31, 2010 an additional 1.7 million shares of ordinary common stock at an exercise price of $16 per share.

Deal Value (US$ Million) 27.2
Deal Type                Private Placement
Sub-Category             None
Deal Status              Announced: 2009-11-05

Deal Participants

Target (Company)   Steinway Musical Instruments, Inc.
Acquirer (Company) Samick Musical Instruments Co., Ltd.

Deal Rationale

Steinway intends to use the proceeds form the offering to retire outstanding debt and for general corporate purposes.

Offer Price ($ per share) 16
No. Shares Issued         1700000

Related terms: corporate, debt, exercise, manufacturer, Private Placement