American Eagle partial greenshoe ups convertibles to $415.03 million

By Sarah Lizee

Olympia, Wash., May 4 – Initial purchasers of American Eagle Outfitters Inc.’s five-year convertible notes exercised a $15.025 million portion of their $60 million greenshoe, bringing the total deal size to $415.025 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced $400 million of the convertible notes after the market close on April 22 at par with a coupon of 3.75% and an initial conversion premium of 30%, according to a company news release.

Pricing came at the cheap end of talk for a coupon of 3.25% to 3.75% and at the midpoint of talk for an initial conversion premium of 27.5% to 32.5%, according to a market source.

BofA Securities, Inc. and J.P. Morgan Securities LLC were joint bookrunners for the Rule 144A offering.

The notes are non-callable until April 17, 2023 and then subject to a 130% hurdle over the conversion premium.

The notes are putable upon a fundamental change.

There is dividend protection.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used for general corporate purposes.

American Eagle Outfitters is a Pittsburgh-based clothing and accessories retailer.

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