RH ‘explores’ $300 million 0% five-year convertibles offering, up 25%, at 99 to par price

By Abigail W. Adams

Portland, Me., Dec. 4 – RH, formerly Restoration Hardware, is “exploring a potential offering” of $300 million five-year convertible notes with price talk for a coupon of 0%, an initial conversion premium of 25% and a reoffer price of 99 to par, according to a company news release and a market source.

BofA Merrill Lynch is the bookrunner for the prospective Rule 144A deal.

If the company moves forward with the prospective offering, the company will enter into convertible note hedge and warrant transactions.

The financing is opportunistic, the company said in the press release. Proceeds would be used to cover the cost of the call spread and pay down debt under the company’s credit facility.

RH is a Corte Madera, Calif.-based home furnishings company.

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