Shares of American Apparel Inc. fell 13.9 percent after the company priced its underwritten public offering of 61 million shares at 50 cents each.
The company said it will use the net proceeds to fund working capital and for general corporate purposes. It also said it expects the public offering to close around March 31, subject to certain conditions.
Shares of American Apparel on Wednesday fell to 51 cents in trading on the New York Stock Exchange.
In a filing Tuesday afternoon with the Securities and Exchange Commission, American Apparel said it entered into an amendment to its credit agreement in connection with its financing facility with Capital One Business Credit Corp. wherein the lender would waive certain obligations once it receives “at least $25 million of net proceeds from a financing prior to April 15, 2014.”
Availability from its Capital One facility is down to $2.7 million from $6.3 million at the end of last year. The company is also facing an April 15 deadline with the NYSE MKT exchange concerning whether it can remain a listed firm.
Alberta Ferretti's "Rainbow Week" sweaters are back. The designer closed her #MFW show with a few day-of-the-week sweaters, which first debuted on the catwalk last January as part of the pre-fall 2017 collection. #wwdfashion (📷: @delphineachard)