LOS ANGELES -- Shareholders of Carter Hawley Hale Stores are scheduled to meet on Feb. 25 to authorize 11.8 million new shares of common stock.
Approval is assured since two shareholders who control 60 percent of the eligible votes have agreed to vote in favor of the new shares.
The stock will be issued to holders of 6 1/4 percent convertible notes who choose to convert the notes to common stock. The notes were sold in a private placement last month.
The debt issue, with a face value of $143.8 million, raised $138 million in new capital for CHH. The notes mature Dec. 31 and are convertible into CHH common stock at $12.19 a share. CHH stock closed Tuesday at 9 1/8, unchanged, on the New York Stock Exchange.
CHH, which emerged from Chapter 11 in October 1992, has been struggling with a depressed California economy. In the third quarter ended Oct. 30, the company lost $25.2 million and stated that it expected a weak fourth period.
Proceeds of the notes are earmarked to pay down debt and modernize stores.
"I was driving back on Saturday afternoon from the beach, and I just saw this sign saying 'Skydiving for $95.' And I was like, I can't not sky dive for $95," says Tom Bateman about a moment in Hawaii while shooting "Snatched." #wwdeye (📷: @vsteves; Interview by @ktauer; Styled by @thealexbadia)