Retail Ventures $125 million five-year exchangeables talked at 6.125%-6.625%, up 27.5%-32.5%

By Kenneth Lim

Boston, Aug. 9 - Retail Ventures Inc. plans to price on Thursday after the market closes $125 million of five-year mandatory senior notes exchangeable into DSW Inc. common stock, talked at a coupon of 6.125% to 6.625% and an initial conversion premium of 27.5% to 32.5%.

There is a greenshoe for a further $18.75 million.

Lehman Brothers is the bookrunner for the registered off-the-shelf offering.

The exchangeables will be non-callable.

They will have full dividend protection, and early conversion will be allowed if the consideration in a change of control at DSW involves at least 30% cash.

Shares of DSW, a subsidiary of Retail Ventures, closed at $27.55 on Wednesday, down by 3.03% or 86 cents.

Retail Ventures plans to use the proceeds of the deal to pay down its existing revolving loan and other debt.

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