Pier 1 exchanges, buys back $69.5 million 6.375% convertible notes

New York, July 30 - Pier 1 Imports, Inc. said it agreed to exchange or buy back $69.5 million of its 6.375% convertible senior notes due 2036.

In exchange for $64.5 million of the existing notes, the company will issue $61 million of new 9% convertible senior notes due 2036. It also bought back $5 million of the existing notes for cash.

Following the transactions, $16.6 million of the 6.375% convertibles remain outstanding.

The new 9% convertibles have a conversion price of $2.5050, a conversion ratio of 399.2016. The price is a 20% premium to the 60-day volume-weighted average price of Pier 1's stock. They are putable on Feb. 15, 2013 and subsequent dates.

Pier 1 noted that earlier this year a foreign subsidiary bought $79 million of the convertibles.

The company is a Fort Worth, Texas-based specialty retailer.

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