Newell Rubbermaid slashes dividend again

Newell Rubbermaid shares slid said more than 8 percent in midday trading Tuesday on its announced plans to reduce its quarterly dividend by half, to a nickel per share.

The company also plans to issue $250 million in convertible senior notes. The dividend cut is the second since December.

Its shares have plunged more than 70 percent in the last year as the global recession has taken its toll on the company.

But the Sandy Springs-based maker of Sharpie pens, Graco baby strollers and Irwin Tools also reiterated its first quarter earnings guidance of 7 cents to 12 cents per share, excluding special items and charges.

The new convertible note offering, which would come due in 2014, comes as Newell’s $450 million receivables-backed credit line is set to expire.

The company said it will use the proceeds from the new notes to pay down part of $750 million in debt that matures in the second half of this year.

It said it expects roughly $243.1 million in proceeds from the offering. It also plans to give the underwriters an option to buy up to an additional $37.5 million notes that would come due in 2014 to cover any overallotments.