MICHAELS ANNOUNCES PROPOSED STOCK OFFERING
MICHAELS ANNOUNCES PROPOSED STOCK OFFERING IRVING, Texas, Nov. 19 /PRNewswire/ -- Sam Wyly, chairman of
Michaels Stores, Inc. (AMEX: MKE) today announced that the company is filing today a registration statement with respect to an underwritten offering of 3 million shares of the company's common stock. The First Boston Corporation and Robertson, Stephens & Company will act as managing underwriters of the offering. The company will sell 2,500,000 shares in the offering, and Sam and his brother Charles, vice chairman, will sell 500,000 shares, about 11 percent of their beneficial ownership.
The company plans to use the proceeds from the offering to redeem a major part of the company's 12-3/4 percent senior subordinated notes due Jan. 15, 1997. These notes, sold five years ago at a discount, have an effective yield cost of 15.8 percent, so the company expects to substantially reduce annual interest expenses. Today, the face amount of the 12-3/4 percent notes outstanding is $42.4 million. The company also said that $5.8 million in cash and $825,000 in 12-3/4 percent notes were tendered, Friday, Nov. 15, 1991, with the exercise of approximately 962,000 warrants at $6.90 per share. These warrants were issued with the 12-3/4 percent notes about five years ago. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This announcement 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 in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Written or telephonic requests for a copy of a written prospectus with respect to the offering should be directed to: Michaels Stores, Inc., P.O. Box 619566, DFW, Texas 75261-9566, Attn: Administration, 214-580-8242. -0- 11/19/91 /CONTACT: Don Morris, chief financial officer of Michaels Stores, 214-580-8242/ (MKE) CO: Michaels Stores Inc. ST: Texas IN: REA SU: OFR TS -- NY042 -- 4940 11/19/91 12:06 EST
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|Date:||Nov 19, 1991|
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