RH no longer exploring $300 million 0% five-year convertibles sale

By Wendy Van Sickle

Columbus, Ohio, Dec. 13 – RH, formerly Restoration Hardware, is no longer exploring the opportunistic offering of $300 million of convertible notes that it announced on Dec. 4, the company announced in a press release on Thursday

“RH’s current capital structure and internally generated cash flow are more than sufficient to meet future obligations and long-term growth objectives,” the release states.

“As such, the purpose of this financing was opportunistic, and RH has determined that current market conditions are not conducive to an attractive convertible notes offering at this time.”

As previously reported, price talk on the potential offering of $300 million five-year convertibles was for a coupon of 0%, an initial conversion premium of 25% and a reoffer price of 99 to par.

BofA Merrill Lynch was to be the bookrunner for the prospective Rule 144A deal.

Proceeds would have been used to cover the cost of the call spread and to pay down debt under the company’s credit facility.

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

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