SPRINGFIELD, Mass. (AFX) - Handgun maker Smith & Wesson Holding Corp. said Wednesday that it has been approved to borrow up to $30 million under an acquisition-related line of credit with TD Banknorth NA, but has no definitive acquisition plans.
The company also said it has filed a pair of shelf registration statements with the Securities and Exchange Commission enabling it to sell up to $150 million in stock.
Smith & Wesson has received approval for a $30 million, two-year revolving acquisition line of credit with TD Banknorth that will be available to finance up to 90 percent of the price of acquisitions.
One SEC registration statement is intended to enable the company to issue and sell-- in one or more public offerings-- up to 15 million shares of its common stock at prices and on terms determined at the offering. The other would allow Smith & Wesson to issue and sell securities valued at up to $150 million in connection with the acquisition of businesses.
The statements have been filed with the SEC but have not yet become effective.
'We have previously indicated our intention to expand and diversify our business through strategic acquisitions and alliances,' President and Chief Executive Michael F. Golden said in a statement. 'We do not currently have any definitive plans for acquisitions or alliances and have not entered into any letter of intent or other documentation with respect to any such transaction. We also have no current plans to raise additional funds through the public securities markets or through our credit agreement.'
Shares of Smith & Wesson rose 16 cents to $8.70 in after-hours trading on the INET electronic stock exchange, after losing 25 cents, or nearly 3 percent, to close at $8.55 on the Nasdaq.
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