Home / Knowledge / News / Apparel/Garments / Wet Seal announces $27mn private placement of notes
Wet Seal announces $27mn private placement of notes
21
Mar '14
The Wet Seal, Inc., a leading specialty retailer to young women, announced that it has entered into a definitive agreement with a single institutional investor to issue $27 million of convertible notes as well as warrants to purchase Class A common stock in a private placement. The transaction is expected to close on March 26, 2014, subject to customary closing conditions. The company intends to use the proceeds for general corporate purposes.
 
The convertible notes will bear interest at a rate of 6% per year, subject to certain adjustments, and mature in March 2017. The convertible notes will be convertible, at the holder's option, into shares of the company's Class A common stock at a price of $1.84 per share, subject to customary adjustments. 
 
Monthly interest payments, as well as principal payments scheduled to commence on the six month anniversary of the issuance of the convertible notes, may be settled in cash or shares of the company's Class A common stock, at the option of the company, subject to certain conditions.
 
In connection with the sale of the convertible notes, the company will issue warrants to purchase 8.8 million shares of its Class A common stock. The warrants will be exercisable at $2.12 per share, subject to potential future anti-dilution adjustments. The warrants will be exercisable beginning six months and one day after issuance through September 27, 2019.
 
Pursuant to the terms of a registration rights agreement entered into with the investor, the Company has agreed to file within 45 days of the closing of this transaction a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock issuable upon conversion of, or as payment of principal and interest on, the convertible notes and upon exercise of the warrants.
 
John D. Goodman, Chief Executive Officer, stated, "This transaction enhances our capital structure at a time when our industry is challenged by a number of macro issues, most notably mall traffic and teen shopping patterns. As we announced in our year-end earnings press release today, we are embarking on a strategic plan designed to restore comparable store sales growth, improve merchandise margins and strengthen our market position. 
 
We have a prudent capital spending plan for 2014 and will be deploying resources toward the significant opportunities we see to grow our e-commerce business, transform our real estate portfolio and expand our presence in the plus-size market. This new capital provides us with the financial flexibility to more effectively execute our strategies."
 
About The Wet Seal, Inc.
Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailerof fashionable and contemporary apparel and accessory items. As of February 1, 2014, the Company operated a total of 532 stores in 47 states and Puerto Rico, including 475 Wet Seal stores and 57 Arden B stores. 
 

The Wet Seal


Must ReadView All

Textiles | On 28th May 2016

US to rethink on inclusion of Indian PET in GSP

With the US set to rethink the inclusion of polyethylene...

Textiles | On 28th May 2016

China’s textile exports marginally down in Jan-April

The exports of textiles and apparel from China dropped marginally...

Textiles | On 28th May 2016

MMF sector seeks anti-dumping duty on Chinese fabrics

Reeling under the impact of cheap Chinese fabrics, Surat’s textile...

Interviews View All

Victor Chao
Esmetex

Could you describe the global market for sportswear? Which are the...

Dinaz Madhukar
DLF Emporio and DLF Promenade

How do you see the competition from e-stores? What is the marketing...

Neel Sawhney
One Friday

What is the overall size and growth of the market for kidswear in India?...

Eamonn Tighe
Nature Works LLC

<b><i>Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of ...

Iago Castro Asensio
RCfil Distribuciones S.L.

<b><i>Iago Castro Asensio, International Business Manager of RCfil...

Urs Stalder
Sanitized AG

<b><i>Urs Stalder, CEO, Sanitized AG, talks about the increasing use of...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
May 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search