We're going to see a lot more Colt Rifles Hitting The Market In '13

General General Discussion
1
  1. In its 10-K filing, Colt Defense (CLTDEF) said it bought back the equity stake held by Blackstone. Those NY aholes were the mfers holding back CLTDEF from selling directly to the civilian market.

http://www.sec.gov/Archives/edgar/data/1508677/000110465913024404/a12-29158_110k.htm

On March 22, 2013, we purchased 31,165.589 common units (the “Unit Repurchase”) from Blackstone Mezzanine Partners II-A L.P. and Blackstone Mezzanine Holdings II USS L.P. (collectively, the “Blackstone Funds”) (representing 100% of the Colt Defense common membership units held by the Blackstone Funds) for an aggregate purchase price of $14.0 million pursuant to an equity purchase agreement dated as of March 22, 2013 (the “Unit Repurchase Agreement”), by and among Colt Defense and the Blackstone Funds. In accordance with the Unit Repurchase Agreement, upon consummation of the Unit Repurchase, the Blackstone Funds delivered the certificates representing the common units held by the Blackstone Funds to Colt Defense for cancellation, and the rights of the Blackstone Funds under our Amended and Restated LLC Agreement, including appointment rights with respect to Colt Defense’s Governing Board, were terminated. The resignation of Vince Lu and Marc Baliotti, the directors appointed to the Governing Board by the Blackstone Funds, was effective upon consummation of the Unit Repurchase. The Unit Repurchase Agreement provided customary releases and indemnities for Colt Defense and the Blackstone Funds and provides that, upon certain events occurring prior to September 22, 2013, including an acquisition of Colt Defense, a purchase by Colt Defense of common units from one of our members or a cash distribution (other than a tax distribution) by Colt Defense to our members, we may be required to pay additional amounts to the Blackstone Funds if the per unit purchase price in such subsequent transaction exceeds the per unit purchase price paid to the Blackstone Funds.

  1. CLTDEF has distributed its M4’s through Colt’s Manufacturing (CMC - which makes the pistols) - a sister but independent co. That exclusive distribution agreement expires this coming May.

So, the implications are … the structural bottlenecks for Hartford Horsey’s to hit the market are going away. Finally.

CLTDEF will sell more rifles (it needs to, having lost key profitable U.S. military contracts). Hopefully, it will make more money selling rifles into a more efficient commercial distribution channel.

ETA: Looks like CLTDEF is staying put in CT, even as the state legislature and the governor are working on a one feature AWB to be voted on next week.

2

Thats good to hear, the pony is as American as the Corvette.
Now, lets just make sure they have damn dust covers on them.

3

Too bad Colt has gone full goofball circus in their recent offerings. :frowning:

4

They haven’t been free to design and sell stuff to civvies because of Blackstone.

Give 'em some time.

5

Why would such a bottleneck that would restrict sales and therefore diminish profits come to fruition in the first place?

6

I’m suing Colt for emotional distress and lost work. :stuck_out_tongue:

7

LOL.

IBFTB.

I picked up a LE6920 (in CT) before Newtown.

Alas, after the ban is passed next week (if you believe the news), I won’t be able to buy anything new from Colt. :suicide: Talk about emotional distress.

Unless I move.

8

CMC (the sister co) didn’t really have a huge financial incentive to sell the rifles. My understanding was that the markup was tiny.

9

I certainly hope that the end result of all this is more Colt Rifles available for civilian sales. Won’t hurt my feelings one bit. If this ammo and mag loonacy ever ends I’d love to get a 901.

10

Yay!

I really want to buy another 6920 when the prices come back down out of the stratosphere.

I am starting to see ARs come back in gun stores and pricing on the lower teir guns (like DPMS and Stags) are around 1300 or so. Have not seen that in months.

Could the panic be nearing the end? Maybe…lets hope.

-brickboy240

11

Hush!!! Don’t jinx it man!

12

Nah, not yet, just you wait. Pink and lime green camo job for every 6920! :eek:

13

It wouldn’t surprise me. They’re going after the ARFcom market it seems. :rolleyes:

14

So Colt is pulling a “SIG” eh?

Focusing more on finishes and variations?

Lets hope that unlike SIG…their QC does not go down because they are trying to be everything to everybody.

-brickboy240

15

One thing Colt needs is variation. The 6920 is like the 90’s are calling and want their rifle back. Yes it works but its so far behind he times. Carbine gas system, fixed front sight post, short handguards etc. I am glad to see Colt making a three gun rifle. They need more innovation.
Pat

16

I don’t think Colt has ANY business “innovating”. No matter what they come up with, people are going to customize it to their wants.

Just build a basic solid carbean, and leave all the aftermarket crap off the gun.

17

I would pick up a colt if they made a 16" mid-length with a Troy folding rear and a FSB. I build my own since they don’t offer this setup. Unless, they already have made this setup and I don’t know about it.

18

Just as long as “variation” does not mean a slip in overall build quality.

As in the case with SIG and others…that is how it usually goes.

Also, remember the teething problems Glock had when they moved away from the tried and true 3rd gen guns.

-brickboy240

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I want to see them build a 18 inch medium contour gun with a rifle gas system and longer 15 inch handguards like the Troy TRX in their main line. As for carbines at least do a midlength with their 16 inch guns. Drop that stupid monolithic upper on the 6940. Use some stainless barrels for those of us that want them. I have no use for fixed front sight bases or gas block mounted folding sights.
Pat

20

I wonder how much Blackstone made in the buy back…

My local LEO’s tell me that rifle inventory is up here; they see rifles on the shelves everywhere now, and LE6940’s are back to within $200 of what they were before all this started on GB…but ammo still not available…