Daily News
From Home Furnishing Business
RH Sets $250M Notes Offering
June 16,
2015 by in Furniture Retailing, Industry 
Lifestyle home furnishings retailer Restoration Hardware (NYSE: RH) will offer $250 million in convertible senior notes in a private placement.
Proceeds from the sale will help fund expansion and allow the retailer to pursue additional growth opportunities.
The notes, due 2020, will be to one or more initial purchasers.
The retailer also plans to grant the purchasers of the notes a 13-day option to acquire up to an additional $50 million in principal amount of the notes under the same terms and conditions.
In connection with the offering of the notes, Restoration Hardware expects to enter into convertible note hedge and warrant transactions which are generally expected to prevent dilution up to approximately 100% over the common stock price at the time of pricing of the notes.
A portion of the proceeds from the offering will be used to pay the net cost of the convertible note hedge transactions.
The notes will be convertible into cash, shares of Restoration Hardware’s common stock, or a combination, at Restoration Hardware’s election. The interest rate, conversion price and other terms of the notes are to be determined.