Restoration Hardware Holdings, Inc. Announces $300 Million Convertible Notes Offering
17 June 2014 - 6:01AM
Business Wire
Restoration Hardware Holdings, Inc. (NYSE: RH) today announced
its intention to offer $300 million aggregate principal amount of
convertible senior notes due 2019 in a private placement to one or
more initial purchasers. Restoration Hardware also intends to grant
the initial purchasers of the notes a 13-day option to purchase up
to an additional $50 million in aggregate principal amount of the
notes on the same terms and conditions, for a total potential
offering size of up to $350 million.
In connection with the offering of the notes, Restoration
Hardware expects to enter into convertible note hedge and warrant
transactions which are generally expected to prevent dilution up to
approximately 100% over the common stock price at the time of
pricing of the notes.
The Company intends to take advantage of favorable market
conditions for convertible notes in order to provide it with
additional capital to fund its business initiatives including the
continuing transformation of its real estate platform, paying down
higher interest borrowings from the Company's current credit line,
and strengthening the Company's balance sheet during the next five
years.
The notes will be convertible into cash, shares of Restoration
Hardware’s common stock, or a combination thereof, at Restoration
Hardware’s election. The interest rate, conversion price and other
terms of the notes are to be determined.
The immediate use of proceeds from the offering will be to pay
the net cost of the convertible note hedge transactions and general
corporate purposes, including repayment of all of the outstanding
indebtedness under the Company’s credit facility.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The notes and the shares of common stock issuable
upon conversion of the notes, if any, will not be registered under
the Act or any state securities laws, and unless so registered, may
not be offered or sold in the United States except pursuant to an
exemption from the registration requirements of the Act and
applicable state laws.
About Restoration Hardware Holdings,
Inc.
RH (Restoration Hardware Holdings, Inc. - NYSE:RH) is a curator
of design, taste and style in the luxury lifestyle market. The
Company offers collections through its retail galleries, source
books, and online at RH.com.
Forward-Looking
Statements
Some of the statements in this press release are
“forward-looking” and are made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
These “forward-looking” statements include statements relating to,
among other things, the proposed offering of the convertible senior
notes, the anticipated terms of the notes and the convertible note
hedge and warrant transactions as well as any dilution impact to
holders of the common stock, the expected use of the net proceeds
from these transactions and the Company’s expectations concerning
market conditions for an offering of convertible notes. These
statements involve risks and uncertainties that may cause results
to differ materially from the statements set forth in this press
release. The forward-looking statements in this press release speak
only as of the date of this press release and are subject to
uncertainty and changes. Given these circumstances, you should not
place undue reliance on these forward-looking statements.
Restoration Hardware expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to such
statements to reflect any change in its expectations with regard
thereto or any changes in the events, conditions or circumstances
on which any such statement is based.
Restoration HardwareCammeron McLaughlin, 415-945-4998VP,
Investor Relationscmclaughlin@rh.com
RH (NYSE:RH)
Historical Stock Chart
From Jun 2024 to Jul 2024
RH (NYSE:RH)
Historical Stock Chart
From Jul 2023 to Jul 2024