Saks investors may convert notes to stock following ratings cut

By Jennifer Chiou

New York, June 17 - Saks Inc. announced holders of its $230 million 2% convertible senior notes due March 15, 2024 are entitled to convert the notes into stock due to its downgraded ratings.

As stated in the note indenture, holders may convert during any period in which Standard and Poor's has assigned the notes a B rating or lower, Moody's Investors Service a B3 rating or lower and Fitch a B- or lower rating, or if one agency no longer rates the notes.

S&P downgraded Saks' senior unsecured debt and corporate credit ratings to CCC+ from B+ on Wednesday in response to the news that the company had received a notice of default over its failure to file a 10-K report with the Securities and Exchange Commission.

The Birmingham, Ala.-based company operates department stores.

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