RH Raises FY 2019 Earnings Guidance as a Result of Closing $350 Million Convertible Notes Offering
September 18 2019 - 4:05PM
Business Wire
RH (NYSE: RH) announced today the closing of the sale of $350
million aggregate principal amount of its 0.00% convertible notes
due 2024, including the full exercise of the $50 million
over-allotment option.
As previously announced, RH will apply proceeds from the
offering to retire the Company’s $200 million of outstanding second
lien debt as well as reduce outstanding borrowings under its credit
facilities. Based upon the final terms of the convertible notes
offering and the reduction in outstanding balances of debt bearing
higher interest rates than the 0% convertible notes, the Company is
raising its FY 2019 adjusted diluted earnings per share guidance by
$0.25 to a range of $10.78 to $11.01, and expects an approximate
$0.75 per share benefit to adjusted diluted earnings per share in
fiscal 2020.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The notes and the shares of common stock issuable
upon conversion of the notes, if any, will not be registered under
the Securities Act of 1933, as amended (the “Act”) or any state
securities laws, and unless so registered, may not be offered or
sold in the United States except pursuant to an exemption from the
registration requirements of the Act and applicable state laws.
About RH
RH (NYSE: RH) is a curator of design, taste and style in the
luxury lifestyle market. The Company offers collections through its
Retail Galleries, Source Books, and online at RH.com, RHModern.com,
RHBeachHouse.com, RHBabyandChild.com, RHTeen.com, and
waterworks.com.
Forward Looking Statements
Some of the statements in this press release are
“forward-looking” and are made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
These “forward looking” statements include statements relating to,
among other things, the proposed offering of the notes, the
expected use of the net proceeds from these transactions, the
Company’s expectations regarding a reduction in interest expense,
the Company’s expectations regarding an increase in adjusted
diluted earnings per share, and any statements or assumptions
underlying any of the foregoing. These statements involve risks and
uncertainties that may cause results to differ materially from the
statements set forth in this press release. The forward-looking
statements in this press release speak only as of the date of this
press release and are subject to uncertainty and changes. Given
these circumstances, you should not place undue reliance on these
forward-looking statements. RH expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to such
forward-looking statements to reflect any change in its
expectations with regard thereto or any changes in the events,
conditions or circumstances on which any such statement is based.
The Company is not able to provide a reconciliation of the
Company’s estimate regarding the increase in adjusted diluted
earnings per share for fiscal year 2019 or fiscal year 2020 to the
corresponding GAAP measure without unreasonable effort because of
the uncertainty and variability of the nature and amount of certain
charges and gains removed from the corresponding GAAP measure in
computing adjusted diluted earnings per share.
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version on businesswire.com: https://www.businesswire.com/news/home/20190918005939/en/
Allison Malkin 203-682-8225 allison.malkin@icrinc.com
RH (NYSE:RH)
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