In connection with the offering of the notes,
The Company intends to take advantage of favorable market conditions for convertible notes in order to provide it with additional capital to fund its business initiatives including the continuing transformation of its real estate platform, paying down higher interest borrowings from the Company's current credit line, and strengthening the Company's balance sheet during the next five years.
The notes will be convertible into cash, shares of Restoration Hardware’s common stock, or a combination thereof, at Restoration Hardware’s election. The interest rate, conversion price and other terms of the notes are to be determined.
The immediate use of proceeds from the offering will be to pay the net cost of the convertible note hedge transactions and general corporate purposes, including repayment of all of the outstanding indebtedness under the Company’s credit facility.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The notes and the shares of common stock issuable upon
conversion of the notes, if any, will not be registered under the Act or
any state securities laws, and unless so registered, may not be offered
or sold in
Some of the statements in this press release are “forward-looking” and
are made pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. These “forward-looking” statements
include statements relating to, among other things, the proposed
offering of the convertible senior notes, the anticipated terms of the
notes and the convertible note hedge and warrant transactions as well as
any dilution impact to holders of the common stock, the expected use of
the net proceeds from these transactions and the Company’s expectations
concerning market conditions for an offering of convertible notes. These
statements involve risks and uncertainties that may cause results to
differ materially from the statements set forth in this press release.
The forward-looking statements in this press release speak only as of
the date of this press release and are subject to uncertainty and
changes. Given these circumstances, you should not place undue reliance
on these forward-looking statements.
Cammeron McLaughlin, 415-945-4998
VP, Investor Relations