NEW YORK — Charming Shoppes Inc. completed its sale of $130 million of senior convertible notes to institutional investors, the firm said Tuesday. The notes mature in 2012 and bear an annual interest rate of 4.8 percent.Initial purchasers of the debt were given a 30-day option to acquire up to another $20 million of the notes to cover overallotments.The securities can be converted into Charming’s common stock at $9.88 a share.Last week, Standard & Poor’s rated the proposed bond offering at “BB minus.” The rating agency also affirmed the same status for Charming’s overall corporate credit rating. S&P analyst Diane Shand, in a statement, said the ratings “reflect the company’s high business risk, given its participation in the highly competitive and volatile specialty apparel industry. “This is mitigated, somewhat, by the company’s good position in the faster-growing larger-size women’s specialty apparel segment,” she noted.The Bensalem, Pa.-based firm, as of the end of the first quarter, operated 2,415 doors in 48 states under various nameplates including Lane Bryant and Fashion Bug."

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus