Sotheby's (BID) to Offer $150M Senior Unsecured Convertible Notes and $150M Senior Unsecured Notes

June 9, 2008 8:07 AM EDT

Sotheby's (NYSE: BID) today announced that it intends to offer $150 million of senior unsecured convertible notes due 2013 and $150 million of senior unsecured notes due 2015 through offerings to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. Sotheby's also expects to grant the initial purchasers of the convertible notes an option to purchase up to an additional $22.5 million of convertible notes to cover over-allotments, if any. The interest rates, conversion rate of the convertible notes, offering prices and other terms are to be determined by negotiations between Sotheby's and the initial purchasers of the notes.

Sotheby's expects to use the proceeds from these offerings to finance the acquisition of its York Avenue property and to redeem its $100 million of existing 6.875% Notes due 2009. In addition, Sotheby's expects to use a portion of the proceeds from the transactions and from the warrant transactions referred to below to fund convertible note hedge transactions that Sotheby's expects to enter into with one or more of the initial purchasers of the convertible notes or their affiliates.

Sotheby's, together with its subsidiaries, operates as an auctioneer of fine art, antiques and decorative art, and jewelry and collectibles primarily in the United States, the United Kingdom, and China.

Related Categories

Corporate News

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?