Charming Shoppes says nearly all of the $150 million in 4.75% notes converted ahead of redemption

By Susanna Moon

Chicago, June 6 - Holders of $149.956 million of Charming Shoppes, Inc.'s 4.75% convertible notes due 2012 exercised their right to convert their notes into 15,145,556 shares of common stock ahead of the redemption of the notes, according to a company press release.

The notes were convertible into common stock at a conversion price of $9.88 per share and could be exchanged for 101.21 shares per $1,000 principal amount of the notes, under provisions of the indenture.

The $150 million redemption was announced on April 30.

Holders of $43,000 principal amount did not convert their notes and received $44,040.19, or 102.38% per $1,000 principal amount of the notes plus accrued and unpaid interest up to, but excluding, June 4.

As of June 1, Charming Shoppes had 113.5 million basic shares of common stock outstanding. The conversion has boosted the total outstanding common stock to 128.6 million shares.

On April 30, Charming Shoppes issued $250 million of 1.125% senior convertible notes due 2014 and another $25 million of notes due 2014 after the buyers exercised the greenshoe option on May 11.

With the issuance of the notes due 2014, Charming Shoppes bought back $131 million worth of common stock, or 10.3 million shares.

The company said that it intends to buy back additional shares worth $80 million to $100 million throughout the rest of the fiscal year. The buybacks are intended to offset share dilution related to the conversion of the notes due 2012.

The Bensalem, Pa-based company operates retail stores.

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