Guess' Announces Issuance Of $275mln Of 3.75% Convertible Notes Due 2028

(RTTNews) - Guess' Inc. (GES) announced issuance of $275 million of 3.75% convertible notes due 2028 and retirement of about $185 million of existing 2.00% convertible notes due 2024.

The company noted that the transactions will extend the maturity of a significant portion of the company's convertible senior notes to 2028.

Guess said it has entered into bond hedge and warrant transactions with a warrant strike price of $41.80 per share (a 120% premium to the Company's stock price at the time of pricing of the notes), which are generally intended to limit potential dilution from the private placement transaction.

The company intends to use the net proceeds of the private placement of the new convertible senior notes to retire approximately $185 million of the existing convertible senior notes due in 2024, to repurchase approximately $43 million of its common stock, to enter into the bond hedge and warrant transactions and to fund general corporate purposes.