Charming Shoppes holders tender nearly all 1.125% convertibles

By Angela McDaniels

Tacoma, Wash., July 27 - Charming Shoppes, Inc. holders tendered $139,229,000, or 99.1%, of its $140,451,000 of outstanding 1.125% senior convertible notes due 2014, according to a company news release.

A change-of-control tender offer for the convertibles began June 28 and ended at 11:59 p.m. ET on July 26.

The company will pay par plus accrued interest for the tendered convertibles. The repurchase date was expected to be July 27.

Following settlement, $1,222,000 principal amount of convertibles will remain outstanding.

The company was acquired by Ascena Retail Group, Inc. on June 15. The merger counts as a fundamental change under the indenture governing the convertibles.

As previously reported, the merger did not result in a make-whole adjustment to the conversion price of the securities.

Prior to the merger, each $1,000 principal amount of the notes was convertible into 65.0233 shares of Charming Shoppes stock. As a result of the merger, the rate was changed to $477.92 of cash per $1,000 principal amount, which is an amount equal to the conversion rate of 65.0233 multiplied by $7.35, the amount paid in the merger for each share of Charming Shoppes stock.

Wells Fargo Bank, NA (800 344-5128) is the trustee, paying agent and conversion agent.

Bensalem, Pa.-based Charming Shoppes operates retail apparel stores.

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