Summary
Ross Stores, Inc. has announced the issuance of $150 million in unsecured, senior notes through a private placement to accredited investors. The funding is expected to close around December 14, 2006, and the proceeds will be used for general corporate purposes. This move provides the company with long-term capital to support its ongoing operations and potential growth initiatives. The notes are divided into two series: Series A ($85 million due 2018 at 6.38% interest) and Series B ($65 million due 2021 at 6.53% interest). Both series will bear interest payable semi-annually. The agreement includes standard covenants, and a 'change in control' provision that could trigger an accelerated repayment, unless the company's long-term unsecured senior notes maintain a 'BBB-' rating or better. This issuance is a notable event for investors, indicating the company's strategy for capital management and its commitment to financial flexibility.
Key Highlights
- 1Ross Stores, Inc. is issuing $150 million in unsecured, senior notes via a private placement.
- 2The notes are divided into two series: $85 million (Series A) due 2018 at 6.38% and $65 million (Series B) due 2021 at 6.53%.
- 3Proceeds from the note issuance are designated for general corporate purposes.
- 4Funding for the notes is anticipated to close on or about December 14, 2006.
- 5The Note Purchase Agreement includes customary affirmative and negative covenants.
- 6A 'change in control' clause necessitates offering to repay the notes, unless rating requirements are met.
- 7Certain principal operating subsidiaries of Ross Stores, Inc. are guaranteeing the obligations.