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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 3, 1998 (May 27, 1998).
GENERAL BINDING CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 0-2604 36-0887470
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(State or other juris- (Commission (IRS Employer
diction of in- File Number) Identification No.)
corporation)
One GBC Plaza
Northbrook, Illinois 60062
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 272-3700
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Form 8-K Current Report
For the Month of May 1998
Item 5. Other Events.
On May 27, 1998 the Registrant closed the placement of $150 million of
senior subordinated notes through a Rule 144A offering. The Registrant had
previously announced the placement of the notes on May 21, 1998. The notes bear
a coupon of 9.375% per annum with interest payable semi-annually. The notes
will mature on June 1, 2008. The net proceeds from the notes will be used to
repay $60 million of indebtedness to Lane Industries, Inc., the Registrant's
controlling stockholder, which was used to partially finance the Registrant's
recent acquisition of Ibico AG, and to repay other indebtedness.
Item 7. Exhibits.
1. Press Release of May 21, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
General Binding Corporation
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(Registrant)
Date: June 3, 1998 /s/ Steven Rubin
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Steven Rubin,
Vice President, Secretary
and General Counsel
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EXHIBIT 99.1
[GBC LETTERHEAD]
GBC SUCCESSFULLY ISSUES $150 MILLION OF 10-YEAR NOTES
Northbrook, IL, May 21, 1998 -- General Binding Corporation (Nasdaq:
GBND) announced today that it has successfully completed the placement of $150
million of senior subordinated notes through a Rule 144A offering. The notes
bear a coupon of 9.375% and will mature on June 1, 2008. The transaction is
expected to close on May 27, 1998. The notes carry a rating of "B2" from
Moody's Investors Service and "B" from Standard & Poor's Corp.
The net proceeds from the notes will be used to repay $60 million of
indebtedness to Lane Industries, Inc., an affiliate, which was used to
partially finance GBC's recent acquisition of Ibico AG, and to repay
approximately $85 million of indebtedness outstanding under GBC's revolving
credit facility. The lead manager on the subordinated note issue was BT Alex.
Brown, and the co-managers were CIBC Oppenheimer, ABN Amro Incorporated, First
Chicago Capital Markets, Inc. and Nesbitt Burns Securities Inc.
"This note offering is GBC's first entry into the long-term capital
markets, and it represents an opportunity for a well-established company like
GBC with strong brand names, leading market positions, strong cash flows and
long-term relationships with well-known customers to issue long-term debt at an
historically attractive rate," said President and Chief Executive Officer Govi
Reddy. "We are pleased to be able to issue these securities which help
diversify our funding sources and provide financial flexibility to capitalize
on our growth opportunities."
GBC is an innovative global technology leader in document finishing,
film lamination, visual communications products and paper shredders. GBC's
products are marketed in more than 115 countries under the GBC, Quartet, Ibico,
VeloBind, Shredmaster, Bates, Sickinger, Pro-Tech, Fordigraph and U.S.
RingBinder brand names and are used in the commercial, business, education,
home office and govenment markets.
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One GBC Plaza * Northbrook, Illinois 60062-4195 * 847/272-3700
