Dress Barn sets exchange ratio for 2.5% convertibles exchange offer

By Angela McDaniels

Tacoma, Wash., Jan. 21 - Dress Barn, Inc. determined that the exchange ratio in the exchange offer for its $112.5 million of 2.5% convertible senior notes due 2024 is 55.3341 shares of common stock, according to a company news release.

As previously reported, holders will receive $1,040 in cash plus a number of shares equal to the exchange ratio for every $1,000 principal amount of convertibles exchanged. The company will also pay accrued interest up to but excluding the settlement date, which is expected to be Jan. 27.

The exchange ratio is equal to the quotient of a) 95.1430 shares multiplied by $25.12 - the average of the stock's daily volume-weighted average price for the five trading days ended Jan. 20 - minus $1,000 b) divided by $25.12.

The offer began Dec. 23 and will end at midnight ET on Jan. 22.

J.P. Morgan Securities Inc. is the financial adviser to the company for the offer. D.F. King & Co., Inc. (800 487-4870) is the information agent.

The Suffern, N.Y.-based clothing retailer issued $115 million of the convertibles in December 2004.

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