Tiffany to redeem $400 million of notes with funds from new notes

By Marisa Wong

Madison, Wis., Sept. 22 – Tiffany & Co. plans to redeem in full four series of its notes ahead of maturity using proceeds from an offering of new notes, according to a press release.

The company intends to redeem all $100 million outstanding of its 9.05% series A senior notes due Dec. 23, 2015, all $125 million outstanding of its 10% series A-2009 senior notes due Feb. 13, 2017, all $50 million outstanding of its 10% series A senior notes due April 9, 2018 and all $125 million outstanding of its 10% series B-2009 senior notes due Feb. 13, 2019.

As a result of the redemptions, the company expects to record a debt extinguishment charge, which it estimates will, for the fiscal year ending Jan. 31, 2015, reduce net earnings by about $55 million to $70 million and net earnings per diluted share by roughly $0.43 to $0.53.

The company intends to use any remaining proceeds from the sale of new senior notes due 2044 for general corporate purposes.

Tiffany operates jewelry stores and is based in New York.

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