Dick's Sporting Goods, Inc. announced that it intends to offer, subject to market and other conditions, approximately $125 million issue price of 20-year convertible senior notes through an offering within the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.
The interest rate, number of shares issuable upon conversion of the notes, investor put rights and company redemption rights are to be determined by negotiations between the company and the initial purchasers of the notes. The issue price of the notes is expected to be at a discount to the principal amount at maturity.
The company stated that it expects to grant the initial purchasers a 30-day option to purchase up to an additional $18.75 million issue price of notes.
The company intends to use a portion of the net proceeds for the net cost of a convertible bond hedge in connection with the notes and separate warrant transaction. The company intends to use the remaining net proceeds for general corporate purposes, which may include investing in new stores, accelerating store growth and acquisitions of complementary companies or businesses.
