UBS & Finish Line to pay aggregate of $175 mn to Genesco

05 Mar '08

2 min read

Genesco Inc announced that it has entered into a definitive agreement with The Finish Line Inc and UBS for the termination of the merger agreement with Finish Line and the settlement of all related litigation among Finish Line and Genesco and UBS.

The terms of the settlement agreement are as follows:
• The merger agreement between Genesco and Finish Line will be terminated; the financing commitment from UBS to Finish Line will be terminated;

• UBS and Finish Line will pay to Genesco an aggregate of $175 million in cash along with a number of Class A shares of Finish Line common stock equal to 12.0% of the total post-issuance Finish Line outstanding shares of common stock. As part of the settlement, Genesco and Finish Line have agreed to a mutual standstill agreement;

• The payment of the cash and shares required by the settlement is expected to occur on Friday, March 7, 2008;

• It is currently anticipated that the Class A shares of Finish Line will be remitted to Genesco's shareholders as soon as reasonably practicable following the registration of such shares by Finish Line; and

• The agreement provides for customary mutual releases of the parties.

Genesco Inc, a Nashville-based specialty retailer, sells footwear, headwear and accessories in more than 2,150 retail stores in the United States and Canada.

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