Guess? Inks Exchange & Subscription Agreements To Extend Maturity Of Significant Portion Of Debt To 2028

Guess? Inc GES has entered into separate, privately negotiated exchange and subscription agreements with holders of its 2.00% convertible senior notes due 2024 and other investors.
Under the agreement, the company will exchange about $184.9 million of the existing convertible notes for about $161.4 million of new 3.75% convertible senior notes due 2028.
The company will also issue new convertible notes in a private placement for the issuance in the Transactions of $275.0 million of new convertible notes.
The transactions are expected to settle on or about April 17, 2023.
GES intends to use the net proceeds of the private placement of the new convertible senior notes to retire approximately $185 million of the existing convertible senior notes due in 2024, to repurchase $43 million of its common stock, enter into the bond hedge and warrant transactions and to fund general corporate purposes.
On completion of the transactions, the aggregate principal amount of the existing convertible notes outstanding will be about $115.0 million and new convertible notes will be $275.0 million.
Price Action: GES shares are trading lower by 1.11% at $18.79 in premarket on the last check Thursday.

Overview Rating:

Speculative

0100