Under this transaction, each holder of shares of PGI common stock will receive $15.32 in cash per share following closure on 28 January 2011, which is equal to $18.23 per share minus the previously-announced per share amount of $2.91.
The acquisition was funded via a combination of new senior secured notes and a significant equity contribution by affiliates of Blackstone.
PGI CEO Veronica Hagen said the sale to Blackstone is the culmination of company’s strategic review process and believe that this transaction represents the best value alternative available to the stockholders.
"The leadership team and all of the employees of PGI are excited to begin the next chapter at PGI and to maintain our position as a global industry leader," Hagen said.
Cravath, Swaine & Moore and Blackstone Advisory Partners acted as legal and financial advisor, respectively, to PGI.
Janney Montgomery Scott acted as financial advisor to PGI’s special committee. Richards, Layton & Finger, acted as legal advisor to PGI’s special committee. Simpson Thacher & Bartlett acted as legal advisor to Blackstone.
