Crocs Appoints 2 Blackstone Nominees To Board After $200 Mln Investment

(RTTNews) - Crocs, Inc. (CROX) said Monday it has closed the previously announced investment from a fund affiliated with Blackstone to purchase $200 million of newly issued series A convertible preferred stock.

In connection with the closing of the deal, the Crocs board of directors appointed two new members and accepted the resignation of two current board members.

Crocs plans to use the net proceeds from the Preferred Stock, as well as excess cash, to fund the previously announced $350 million stock repurchase authorization approved by its board.

As a condition of its investment, Blackstone is entitled to nominate two out of eight seats on the Crocs board. As a result, Stephen Cannon and Jeffrey Margolis have resigned from the company's board and Blackstone's two nominees, Prakash Melwani and Gregg Ribatt, have been added to the board of directors, which remains at eight members.