AFG Industries Inc., touted by analysts as the nation's fastest-growing glass maker, plans to issue $75 million in convertible debt--funds it may use to acquire a competitor, company officials said.
The Irvine-based company filed a registration statement last week with the Securities and Exchange Commission covering the proposed public offering of the 20-year subordinated debentures, which will be convertible into common stock at maturity. Drexel Burnham Lambert Inc. will be the sole underwriter of the offering.
The company said the funds raised by the offering will be used for general corporate purposes, including possible glass-related acquisitions. Gary Miller, AFG treasurer, wouldn't say whether the company is involved in any acquisition talks.
Also last week, the company announced that its earnings nearly doubled to $9.2 million on revenues of $103.4 million during the second quarter ended June 30.
The company, forged from two failing producers in 1977, has blossomed into one of the four biggest glass makers in the country. AFG has about 18% of the nation's glass business, including 24% of the construction glass market. AFG moved its corporate headquarters to Orange County in October, 1984.