REEBOK PLACING NEW DEBT: Reebok International Ltd. said it intends to raise up to $300 million through the private placement of new debt in the form of 2 percent convertible debentures maturing in May 2024. Initial purchasers of the debt will also have an option to acquire up to an additional $50 million of the convertible debentures. Reebok said it will use proceeds from the sale for general corporate purposes, which could include debt refinancing, stock repurchases and acquisitions. The debentures will have a conversion price of $51.26, Reebok said, which represents a premium of 35.3 percent over the stock’s Monday closing price.
LOEHMANN’S HEADACHE: Davidco Investments, a shareholder of Loehmann’s Holdings Inc., has filed a lawsuit against the off-pricer in connection with its announcement on Friday that it was being sold to Crescent Capital Investments, according to Bloomberg News. A spokeswoman for Loehmann’s declined to provide details about the lawsuit, but said that the retailer “intends to vigorously defend against this action.” As reported, Crescent will acquire Loehmann’s in a deal valued at $177 million, or $23 per share in cash. Details about the lawsuit were unavailable at press time. In general, it is not uncommon when a company announces a merger or acquisition for a shareholder to file a lawsuit contesting some aspect of the sale. Such lawsuits typically involve disputes over the purchase price, with allegations that the company was undervalued.