GRAND RAPIDS — Office furniture giant Steelcase Inc. has agreed to sell $250 million aggregate principal amount of 6.375% senior notes, due Feb. 15, 2021.

Steelcase said it plans to use the net proceeds from the sale of the notes, together with available cash on hand, to repay the outstanding aggregate principal amount of its 6.5% senior notes due Aug. 15, 2011. Pending repayment of its 6.5% senior notes, the company may invest the net proceeds from the offering in short-term marketable securities. The offering is expected to close on Feb. 3, 2011, subject to market conditions and other factors.

The sale of the notes comes on the heels of Steelcase's announcement that it will close three North American furniture manufacturing plants and consolidate operations to other facilities.

Posted by Karen Koenig

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