By Susanna Moon
Chicago, May 5 – Claire’s Stores Inc. exchanged $174.4 million principal amount of its 10˝% senior subordinated notes due 2017 for $174.4 million principal amount of its newly issued 10˝% pay-in-kind senior subordinated notes due June 1, 2017.
The company entered into two exchange agreements on May 4 with funds managed by affiliates of Apollo Global Management, LLC, according to an 8-K filing with the Securities and Exchange Commission.
The existing subordinated notes had been acquired by the Apollo funds in the open market.
The Apollo funds are the indirect controlling shareholders of the company.
The new PIK notes were issued on May 4 with terms that are substantially the same as those of the existing subordinated notes except that interest will be paid in-kind on June 1 and may be paid in-kind, in cash or 50% cash/50% in-kind for the Dec. 1, 2016 interest payment, the filing noted.
The new PIK notes may be redeemed at par at any time.
Claire’s is a Pembroke Pines, Fla.-based retailer of fashion accessories and jewelry.
New notes
| Issuer: | Claire’s Stores Inc.
|
| Issue: | PIK senior subordinated notes
|
| Amount: | $174.4 million
|
| Maturity: | June 1, 2017
|
| Coupon: | 10˝%
|
| Settlement date: | May 4
|
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