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.
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, attributable to
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.