Designer Holdings sells $120 million of convertible trust originated preferred securities.NEW YORK--(BUSINESS WIRE)--Nov. 1, 1996--Designer Holdings Ltd. (NYSE NYSE See: New York Stock Exchange :DSH DSH Disproportionate Share Hospital DSH Domestic Short Hair (cat) DSH Deliberate Self-Harm DSH Desperately Seeking Help (USENET) DSH Dyschromatosis Symmetrica Hereditaria ) today announced that it has completed an offering of 2,400,000 shares of 6% convertible trust originated preferred securities (Convertible TOPrS), representing an aggregate amount of $120 million issued by its financing vehicle, Designer Holdings Finance Trust, a Delaware business trust. The Convertible TOPrS are convertible at the option of the holders into Designer Holdings Common Stock at $23.52 per share, representing a conversion premium of 23%. The underwriters have an over-allotment option to purchase up to an additional $18 million of the Convertible TOPrS. The proceeds from the offering will be used to repay term debt and to reduce outstanding borrowings under the company's revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. Designer Holdings intends to reborrow under the facility to fund expected growth which includes the recently announced acquisition of a 30-year license to manufacture and distribute DKNY DKNY Donna Karan New York Jeanswear, and the expansion of its Calvin Klein Noun 1. Calvin Klein - United States fashion designer noted for understated fashions (born in 1942) Calvin Richard Klein, Klein Jeanswear business. The offering was managed by Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. and Morgan Stanley & Co. Incorporated. Designer Holdings Ltd. currently develops, sources and markets designer sportswear collections under the Calvin Klein Jeans, CK/Calvin Klein Jeans, CK/Calvin Klein Jeans Khakis labels. The company recently acquired the license to manufacture and distribute DKNY Jeanswear beginning in June 1997. Calvin Klein products for men, juniors, women and petites are distributed through a broad range of department stores and specialty retailers in the U.S. and DKNY products will be distributed worldwide. CONTACT: Designer Holdings Ltd. Maurice Dickson, 212/556-9600 or Morgen-Walke Associates Investor Contact: Christine DiSanto/Jim Cappuccio, 212/850-5600 Media Contact: Stacy Berns/Michael McMullan, 212/850-5600 |
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