Printer Friendly

CLAIRE'S STORES AMENDS TERMS OF $25 MILLION CONVERTIBLE SUBORDINATED NOTES

 CLAIRE'S STORES AMENDS TERMS OF $25 MILLION
 CONVERTIBLE SUBORDINATED NOTES
 PEMBROKE PINES, Fla., April 16 /PRNewswire/ -- Claire's Stores, Inc. (NYSE: CLE) today announced that effective April 13, 1992 the company amended the Note Purchase Agreements dated Aug. 9, 1991 under which the company issued $25 million of 8 1/2 percent Convertible Subordinated Notes due June 30, 2001 (the "notes") to institutional investors in a private placement. The amendments permit the company to prepay the notes, in whole or in part, at par without premium through May 31, 1993. Thereafter, the company may make optional prepayments at par without premium if the company's common stock is trading at a price live equal to or greater than 125 percent of the conversion price of the notes. After May 31, 1993, the conversion price will be reduced to $11.50 per share for any notes which remain outstanding. The amendments require mandatory prepayments of $5 million on Feb. 4, 1993, $5 million on Jan. 31, 1994, $7 million on Jan. 31, 1995, and accelerate the final maturity of the notes to Jan. 31, 1996.
 Prior to the amendments, the company was required to make prepayments on the notes commencing June 30, 1997 of $5 million per year to the final maturity date. However the notes were not redeemable at the company's option prior to July 1, 1994, and thereafter were redeemable only at par plus a premium if the company's common stock was trading at a price level equal to or greater than 150 percent of the conversion price of $18.00 per share.
 "With a view to eliminating the dilutive effect of our outstanding convertible subordinated notes, we have negotiated the right to prepay the notes at par, without premium, through May 31, 1993, while the conversion price remains at $18.00 per share," stated Rowland Schaefer, Claire's chairman and president. "We have every confidence that we will be able to make substantial prepayments of the notes by May 31, 1993, or even possibly to prepay the notes in full by that date," he concluded.
 Claire's Stores, Inc., the nation's premier retailer specializing in one-stop shopping for women's fashion accessories, currently owns and operates 1,001 stores in 47 states, primarily under the names "Claire's Boutiques", "Topkapi", and "Dara Michelle."
 -0- 4/16/92
 /CONTACT: David Buchsbaum, director of financial relations of Claire's Stores, Inc., 305-433-3900/
 (CLE) CO: Claire's Stores, Inc. ST: Florida IN: REA SU:


AW-JJ -- FL006 -- 9137 04/16/92 09:45 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 16, 1992
Words:414
Previous Article:KROGER COMPANY OFFICIAL COMMENTS ON STRIKE
Next Article:VALMONT ANNOUNCES FIRST QUARTER RESULTS


Related Articles
CLAIRE'S STORES COMPLETES $25 MILLION PREPAYMENT OF CONVERTIBLE SUBORDINATED NOTES; ACQUIRES $10 MILLION TERM LOAN
CIDCO Incorporated Redeems Convertible Debt
CoreComm Limited Announces Closing of Sale of 6% Convertible Subordinated Notes.
FEI Company Sells $150 Million of 5.5% Convertible Subordinated Notes.
Walter Industries, Inc. Announces Agreement to Sell Convertible Senior Subordinated Notes.
Walter Industries, Inc. Announces Completion of Convertible Senior Subordinated Note Offering.
Sinclair Broadcast Group Agrees to Issue Two Series of Notes.
CONMED Corporation Announces Issuance of 2.50% Convertible Senior Subordinated Notes.
CONMED Corporation Announces Pricing of 2.50% Convertible Senior Subordinated Notes.
RFMD Announces Proposed Convertible Note Offering.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters