Restoration greenshoe lifts 0% five-year convertibles to $300 million

By Wendy Van Sickle

Columbus, Ohio, July 2 – Restoration Hardware Holdings Inc. underwriters fully exercised the $50 million over-allotment option on its 0% five-year convertible senior notes, bringing the total deal size to $300 million, according to a press release.

Restoration Hardware originally priced $250 million of the notes on June 17 with a 25% initial conversion premium.

The notes priced at par and were reoffered at 98.75.

BofA Merrill Lynch and Goldman Sachs & Co. were the bookrunners for the Rule 144A offering.

In connection with the notes, the company entered into convertible note hedge and warrant transactions, or a call spread. The strike on the warrants is $189.00, which boosts the initial conversion premium to 100% from the issuer’s perspective.

Proceeds will be used to fund growth initiatives.

Corte Madera, Calif.-based Restoration Hardware is a specialty retailer.

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