By Angela McDaniels
Tacoma, Wash., May 27 - Saks Inc. said the $15 million over-allotment option for its recent issue of 7.5% convertible notes due Dec. 1, 2013 was fully exercised, raising the issue size to $120 million.
The company priced $105 million of the convertibles after the close May 20 with a 25% initial conversion premium. The deal had been increased from a planned amount of $80 million.
Saks sold the securities under Rule 144A via bookrunners Goldman Sachs & Co. and Morgan Stanley & Co. Inc.
The conversion price is $5.54, and the initial conversion ratio is 180.5869.
The notes are convertible into cash, stock or a combination at Saks' choice.
They are non-callable with no puts.
The proceeds will be used to pay down Saks' revolving credit facility and for general corporate purposes.
Saks is a New York-based retailer.
| Issuer: | Saks Inc.
|
| Issue: | Convertible notes
|
| Bookrunners: | Goldman Sachs & Co. and Morgan Stanley & Co. Inc.
|
| Amount: | $120 million, including $15 million greenshoe
|
| Maturity: | Dec. 1, 2013
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $5.54
|
| Conversion ratio: | 180.5869
|
| Call option: | None
|
| Put option: | None
|
| Pricing date: | May 20
|
| Settlement date: | May 27
|
| Stock symbol: | NYSE: SKS
|
| Stock price: | $4.10 at close May 27
|
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