Price Club bond sale nets $247M - Price Co

Discount Store News, March 18, 1991

Price Club Bond Sale Nets $247M

SAN DIEGO -- The Price Club has netted $247.5 million from the sale of 6 3/4% convertible subordinate debentures, face value $1,000 each, and will use the proceeds for expansion and development of the company's real estate.

The company currently plans to invest over $300 million in land and buildings for additional Price Clubs and another $150 million in development of adjacent property by the end of fiscal 1992, according to the company's offering prospectus.

The debentures, which are due 2001, can be converted to the firm's common stock at a conversion price of $48 per share any time prior to March 1,2001.

The offer was for $250 million in debentures, with $2.5 million going for underwriter discounts and commissions. The Price Club could net another $37.1 million if Lehman Bros., the lead underwriter, and other brokerage houses exercise an option to purchase an additional $37.5 million worth of debentures.