Deal with H.S. Investment and West Face includes five-year warrants
By Devika Patel
Knoxville, Tenn., Oct. 28 - Hudson's Bay Co. said it plans a $750 million private placement of stock with H.S. Investment LP, which will invest $500 million, and West Face Long Term Opportunities Global Master LP, which will invest $250 million.
The company will sell common shares. The per-share price of C$17.00 represents a 3.09% premium to C$16.49, the closing share price on July 26 and is also a 2.38% premium to the five-day volume-weighted average trading price of the shares on July 28, the pricing date, according to a company press release.
The investors also will receive warrants for 6.75 million shares. Each warrant is exercisable at C$17.00 for five years. The strike price is also a 3.09% premium to the July 28 closing share price.
Proceeds will be used for the company's planned acquisition of Saks Inc.
Hudson's Bay is a Toronto-based retailer offering a selection of branded merchandise.
| Issuer: | Hudson's Bay Co.
|
| Issue: | Common stock
|
| Amount: | $750 million
|
| Price: | C$17.00
|
| Warrants: | For 6.75 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$17.00
|
| Investors: | H.S. Investment LP (for $500 million) and West Face Long Term Opportunities Global Master LP (for $250 million)
|
| Pricing date: | July 28
|
| Stock symbol: | Toronto: HBC
|
| Stock price: | C$16.49 at close July 26
|
| Market capitalization: | C$2.3 billion
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