The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
Jones Apparel Group, Inc. to Redeem Outstanding Zero Coupon Convertible Senior
Notes Due 2021 and Increases 2004 Earnings Per Share Guidance
to $2.50 to $2.75
NEW YORK, Dec. 17 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc.
(NYSE: JNY) announced that it will redeem for cash all currently outstanding
Zero Coupon Convertible Senior Notes due 2021. The Redemption Date is
scheduled for February 1, 2004 at a Redemption Price (inclusive of Issue Price
plus Accrued Original Issue Discount of 3.5%) of $554.41 per $1,000.00 of
Principal Amount at Maturity. Notice to all Holders of Securities is being
provided by the Trustee, The Bank of New York, who will serve as Paying Agent.
Wesley Card, Chief Operating and Financial Officer, stated, "The
Redemption Amount of $446.6 million will be funded with cash on hand and the
short-term utilization of a portion of our $1.4 billion committed revolving
lines of credit. Calling these Convertible Senior Notes will add
approximately $0.10 to our previously provided 2004 earnings per share
guidance, resulting in a 2004 estimated earnings per share range of $2.50 to
Mr. Card further stated, "Our strong operating cash flow and solid balance
sheet provide us with substantial financial flexibility as we remain focused
on executing our diversified and balanced business strategy. Our committed
lines of credit and our ability to access the investment grade capital markets
allow us the ability to pursue further financial transactions, including
acquisitions in 2004."
Jones Apparel Group, Inc. (www.jny.com), a Fortune 500 Company, is a
leading designer and marketer of branded apparel, footwear and accessories.
The Company's nationally recognized brands include Jones New York, Polo Jeans
Company licensed from Polo Ralph Lauren Corporation, Evan-Picone, Norton
McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, Nine West, Easy Spirit,
Enzo Angiolini, Bandolino, Napier, Judith Jack, Kasper, Anne Klein, Albert
Nipon and LeSuit. The Company also markets costume jewelry under the Tommy
Hilfiger brand licensed from Tommy Hilfiger Corporation and the Givenchy brand
licensed from Givenchy Corporation, and footwear and accessories under the
ESPRIT brand licensed from Esprit Europe, B.V. Celebrating more than 30 years
of service, the Company has built a reputation for excellence in product
quality and value, and in operational execution.
Certain statements herein are "forward-looking statements" made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements represent the Company's expectations
or beliefs concerning future events that involve risks and uncertainties,
including the strength of the economy and the overall level of consumer
spending, the performance of the Company's products within the prevailing
retail environment, and other factors which are set forth in the Company's
2002 Form 10-K and in all filings with the SEC made by the Company subsequent
to the filing of the Form 10-K. The Company does not undertake to publicly
update or revise its forward-looking statements as a result of new
information, future events or otherwise.
SOURCE Jones Apparel Group, Inc.