Beaumont, Texas - Conn's is moving forward with a previously
announced common stock rights offering in an effort to pay down debt.
The CE, appliance and furniture chain has distributed one
transferable subscription right for each share of common stock owned, giving
shareholders the right to purchase additional shares of Conn's common stock at
a subscription price of $2.70 per share. Shareholders can purchase 0.41155
shares per right under a basic subscription privilege, but are also entitled to
an oversubscription privilege.
Conn's said it plans to use the proceeds to help repay
outstanding balances under its existing asset-backed loans. The company has filed
a prospectus supplement relating to the common stock rights offering with the
Securities and Exchange Commission.
Last week Conn's
a 15.3 percent drop in net sales to $136.7 million for its fiscal
third quarter, ended Oct. 31, and a 16.4 percent decline in same-store sales,
current economic conditions; limitations imposed by its current capital
structure and the resulting impact on its ability to extend credit; its
decision to tighten credit underwriting requirements to protect the quality of
the credit portfolio; and management's emphasis on improving retail gross
margin while maintaining price competitiveness.
Beaumont, Texas - Conn's is moving forward with a previously announced common stock rights offering in an effort to pay down debt.