The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
Jones Apparel Group, Inc. Announces Plans to Issue Convertible Debt
NEW YORK, Jan. 23 /PRNewswire/ -- Jones Apparel Group, Inc. (NYSE: JNY)
today announced that it plans to raise gross proceeds of $300 million through
an offering of 20-year, zero coupon convertible senior debt securities. The
securities will be convertible into common stock of the Company at a premium
to be determined.
The Company has granted the initial purchasers of the securities an option
to purchase additional zero coupon convertible senior debt securities to cover
over-allotments, which if exercised, would provide the Company with
$45 million in additional gross proceeds.
Wesley R. Card, Chief Financial Officer, stated, "We intend to use the
proceeds from this offering to pay down or refinance existing debt and for
general corporate purposes. The extended maturity provides us with additional
financial flexibility to fund our business growth for the future."
The securities have not been and will not be registered under the
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from registration requirements.
SOURCE Jones Apparel Group, Inc.
Web site: http: //www.jny.com
CONTACT: Wesley R. Card, Chief Financial Officer or Anita Britt, Vice President, Finance and Investor Relations, of Jones Apparel Group, 215-785-4000