CNO » Topics » Proposed Registered Offering of Common Stock

This excerpt taken from the CNO 8-K filed Oct 14, 2009.
Proposed Registered Offering of Common Stock
 
On October 13, 2009, we also announced that we plan to file a registration statement with the SEC relating to a proposed registered offering of our common stock that would generate not less than $200.0 million in gross proceeds to us, to the extent such offering of our common stock does not jeopardize our ability to use our existing net operating loss carry-forwards (“NOLs”). See “Risk Factors — Risks Related to the Debentures and Common Stock — Our ability to use our existing NOLs may be materially impaired by this or other transactions, in which case we would also likely breach the debt to equity covenant of our senior credit agreement.” In connection with our agreement to privately sell 16.4 million shares of common stock and warrants to purchase 5.0 million shares of common stock to Paulson, we have agreed that, to the extent such offering of our common stock does not jeopardize our ability to use our existing NOLs, we will use our reasonable best efforts to consummate the proposed registered offering no later than 120 days after the consummation of the intended cash tender offer for our existing debentures (which 120th day we currently expect to be March 13, 2010). There can be no assurance that we will be able to complete the proposed registered offering by the 120th day after the consummation of the intended cash tender offer, in such amount, or at all. We are currently required to use half of the net proceeds of any such issuance to repay indebtedness under our senior credit agreement. The remaining net proceeds would be used for general corporate purposes.


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