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Subject:  Why would a company do this? Date:  5/1/2004  4:26 AM
Author:  jhg1226 Number:  1362 of 2244

I am relatively familiar with the markets, and normally do not follow penny stocks. However, I am interested in knowing why a company would bother doing the following?

DENVER, Apr 30, 2004 /PRNewswire-FirstCall via COMTEX/ -- SAMSONITE CORPORATION (SAMC) announced today that it proposes, subject to market and other customary conditions, to commence a private offering of new senior and senior subordinated notes in an aggregate principal amount of approximately $325 million. The Company intends to use the proceeds of the offering, along with cash on hand and borrowings under its credit facility, to retire its outstanding 10 3/4% senior subordinated notes due 2008 and to pay related fees and expenses. The Company can give no assurance that the proposed offering of the notes will be completed.

Since the notes are not due until 2008, why make an additional offering to create new notes to pay off the current notes that are not due for four more years? Any ideas, or am I confusing apples for oranges?

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