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DSW to settle PIES with 3.8 million class A shares on Sept. 15
By Toni Weeks
San Diego, Aug. 10 - DSW Inc. plans to settle its premium income exchangeable securities, or PIES, that it assumed following its merger with Retail Ventures, Inc. in exchange for about 3.8 million shares of DSW class A common stock on the PIES' maturity date, Sept. 15, according to a filing with the Securities and Exchange Commission.
The company noted that the number of shares required to settle the PIES could increase by up to 1 million if, during the applicable measuring period, Aug. 15 to Sept. 12, the average DSW stock price falls below $34.95.
DSW shares closed at $47.52 (NYSE: DSW) on Aug. 9.
The company also said its board of directors declared a special dividend of $2.00 per share for a total of $86 million. In conjunction with the special dividend, the board also initiated a regular quarterly cash dividend of $0.15 per share. Both types of dividends will be paid on Sept. 30 to shareholders of record at the close of business on Sept. 20.
"Given our strong cash position, we had the financial flexibility to settle the PIES in either shares or cash," president and chief executive officer Mike MacDonald said in the filing. "Our decision to settle the PIES in shares, coupled with the special dividend and initiation of a regular dividend, allows us to increase our public float and return value directly to our shareholders."
Columbus, Ohio-based DSW is a branded footwear and accessories retailer.
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