Dress Barn prices $100 million convertibles to yield 2.5%

New York, Dec. 8 - The Dress Barn, Inc. priced $100 million of convertible senior notes due 2024 to yield 2.5% with a 30% initial conversion premium.

The deal priced at the rich end of talk for a 2.75% to 3.25% coupon and 25% to 30% initial conversion premium.

The conversion price is $21.02 per share.

Banc of America Securities LLC and JPMorgan Securities Inc. are joint lead managers of the Rule 144A deal, which priced after the close Wednesday. Co-managers are Wells Fargo & Co. and SunTrust Robinson Humphrey.

The senior notes will be non-callable for seven years, with puts in years seven, 10 and 15. There is a 120% contingent conversion trigger and 120% contingent payment trigger. The is also a call up to Feb. 28, 2005 if the company's acquisition of Maurices Inc. is terminated.

Full dividend and takeover protection also is included.

A $15 million greenshoe is available.

The Suffern, N.Y.-based retailer said proceeds would be used to finance a part of the cost of its previously announced acquisition of Maurices. If that acquisition is not completed, Dress Barn said proceeds would go toward general corporate purposes.

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