Edition:
United Kingdom

Crocs Announces Repurchase & Conversion Of Convertible Preferred Stock Owned By Blackstone


Monday, 3 Dec 2018 

Dec 3 (Reuters) - Crocs Inc ::CROCS, INC. ANNOUNCES REPURCHASE AND CONVERSION OF CONVERTIBLE PREFERRED STOCK OWNED BY BLACKSTONE; TRANSACTION INCREASES PRO-FORMA YTD 2018 EPS APPROXIMATELY $0.18 OR 30%.SEES FY 2018 REVENUE UP 4 TO 5 PERCENT.SEES Q4 2018 REVENUE $195 MILLION TO $205 MILLION.PARTIES ENTER INTO LOCK-UP AGREEMENT.Q4 AND FULL YEAR 2018 GUIDANCE REAFFIRMED.WILL REPURCHASE HALF OF OUTSTANDING PREFERRED SHARES, REPRESENTING APPROXIMATELY 6.9 MILLION COMMON SHARES ON AN AS-CONVERTED BASIS.AS PART OF AGREEMENT, CO WILL PAY BLACKSTONE A ONE-TIME ADDITIONAL PAYMENT OF $15.0 MILLION.WILL INCUR $15.5 MILLION OF NON-RECURRING CASH CHARGES ASSOCIATED WITH TRANSACTION.AS PART OF AGREEMENT, BLACKSTONE'S RIGHT TO NOMINATE FUTURE DIRECTORS WILL BE REDUCED FROM 2 TO 1.SEES 2019 REVENUES MID-SINGLE DIGIT INCREASE OVER 2018 REVENUES.TRANSACTION WILL BE FINANCED USING CASH ON HAND WITH BALANCE COMING FROM CO'S SENIOR REVOLVING CREDIT FACILITY.IN CONNECTION WITH TRANSACTION, CREDIT FACILITY WAS INCREASED TO $250 MILLION, WITH SIMILAR TERMS.ANTICIPATE THAT E-COMMERCE AND WHOLESALE GROWTH WILL MORE THAN OFFSET LOWER RETAIL REVENUES IN 2019.FY2018 REVENUE VIEW $1.07 BILLION -- REFINITIV IBES DATA.FY2019 REVENUE VIEW $1.13 BILLION -- REFINITIV IBES DATA.WILL REPURCHASE ABOUT 6.9 MILLION COMMON SHARES ON AN AS-CONVERTED BASIS, FOR $183.7 MILLION, OR $26.64 PER SHARE.BLACKSTONE WILL IMMEDIATELY CONVERT ITS REMAINING PREFERRED SHARES INTO ABOUT 6.9 MILLION SHARES OF CO'S COMMON STOCK.