RH Announces $500 Million Incremental Term Debt Financing
Consistent with the strategy of the original
The 2022 Incremental Term Debt has a maturity date of
The Company anticipates that the additional interest expense as a result of the 2022 Incremental Term Debt will be approximately
The issuance of the 2022 Incremental Term Debt was assigned a Ba3 rating from Moody’s Investors Service and BB rating from S&P Global.
Proceeds of the 2022 Incremental Term Debt are expected to be used for general corporate purposes.
Additional details regarding the 2022 Incremental Term Debt are available in the Company’s Current Report on Form 8-K filed with the
RH (NYSE: RH) is a curator of design, taste and style in the luxury lifestyle market. The Company offers collections through its retail galleries, source books, and online at RH.com, RHModern.com, RHBabyandChild.com, RHTEEN.com and Waterworks.com.
This Release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning the terms and conditions of the 2022 Incremental Amendment and the Amended Credit Agreement, the potential cost of capital made available to the RH subsidiaries under such Amended Credit Agreement, the interest rate associated with the 2022 Incremental Term Debt, the length of time the 2022 Incremental Term Debt may remain outstanding, the potential use of proceeds of amounts borrowed under the Amended Credit Agreement, the sources and uses of capital, our belief that we will remain opportunistic with both the sources and uses of capital, statements that the 2022 Incremental Term Debt represents an attractive instrument, our belief that the 2022 Incremental Term Debt will provide additional opportunities and flexibility in our allocation of capital that will create value for our shareholders, statements regarding the credit ratings of the issuance, the covenants and restrictions contained in the Amended Credit Agreement and the ability of the loan parties to maintain compliance with the terms and conditions of the 2022 Incremental Amendment and the Amended Credit Agreement, from time to time. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “if,” “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future events. We cannot assure you that future developments affecting us will be those that we have anticipated. Important risks and uncertainties that could cause actual results to differ materially from our expectations include, among others, risks and uncertainties relating to the aggregate overall level of indebtedness that we incur, the terms and conditions of any debt financing including the Amended Credit Agreement, risks and uncertainties concerning the use of proceeds with respect to any debt financing including the Amended Credit Agreement, risks and uncertainties related to our decisions regarding the allocation and uses of capital, risks and uncertainties related to fluctuations in interest rates, risks and uncertainties concerning whether the financial performance of the Company meets expectations, and those other risks and uncertainties disclosed under the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in RH’s Annual Report on Form 10-K most recently filed with the