RH Exploring Potential $300 Million Convertible Notes Offering
In the event the Company chooses to complete the proposed
The financing would be opportunistic and as such the proceeds would be used to provide the Company with a flexible source of funding to pursue favorable long term allocations of capital. Proceeds of the offering would also be used to pay down the outstanding borrowings under the Company’s credit facility and to pay the net costs of the convertible note hedge and warrant transactions.
The interest rate, conversion price and other terms of any new issuance of notes are subject to the final pricing determination in connection with any offering. The notes would be convertible into cash, shares of RH’s common stock, or a combination thereof, at RH’s election.
This press release does 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
Securities Act of 1933, as amended (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 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, any implications regarding the
possible future price of the Company’s common stock, the expected use of
the net proceeds from these transactions, the Company’s expectations
concerning market conditions for an offering of the notes, and any
statements or assumptions underlying any of the foregoing. 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
SVP, Investor Relations & Strategy