Dick’s Sporting Goods, Inc. announced the extension of the expiration date in connection with its previously announced offer to exchange Foot Locker notes for Dick’s notes to August 29.
The exchange offer was due to expire on August 1. No reason was given by the retailer for the extension.
Additionally, the deadline for tendered Foot Locker notes to be withdrawn, previously scheduled for August 1, has been extended to August 29.
Earlier, on June 23, Dick’s Sporting Goods reported that 92.5 percent of Foot Locker’s note holders have agreed to exchange their debt for Dick’s notes as part of an early tender offer. The debt swap supports the retailer’s $2.4 billion acquisition of Foot Locker, which is expected to close in the second half.
Previously, on June 6, Dick’s announced it would offer holders of Foot Locker’s 4.0 percent senior notes due 2029 the option to swap their debt for up to $400 million aggregate principal amount of new notes issued by Dick’s, with a $970 principal amount of the latter exchanged for every $1,000 of Foot Locker’s debt. As part of the offering, holders who tendered by June 20 were eligible to receive an early participation premium of $30 per $1,000, capping the total consideration at the $1,000 principal amount.
With 92.35 percent of Foot Locker note holders tendering into the early offer, Foot Locker subsequently entered a supplemental indenture on June 20, which proposes note amendments to eliminate restrictive covenants in Foot Locker’s existing debt.
Most recently, on July 24, Foot Locker announced in a regulatory filing that Dick’s had voluntarily withdrawn its pre-merger notification and report form under the Hart-Scott-Rodino Antitrust Improvements Act as part of its plans to acquire Foot Locker. The withdrawal provided the Federal Trade Commission with additional time to review the proposed transaction.
Image courtesy Dick’s Sporting Goods
