New Issue: Skechers $75 million convertibles at 4.5% yield, up 20%

By Ronda Fears

Nashville, Tenn., April 4 - Skechers USA Inc. sold $75 million of five-year convertible subordinated notes at par to yield 4.5% with a 20% initial conversion premium, via sole lead manager CIBC World Markets. The overnight Rule 144A deal sold with a fixed 4.5% coupon and at the middle of premium guidance of 18% to 22%.

Manhattan Beach, Calif.-based Skechers, a shoe manufacturer and retailer, plans to use proceeds to repay its bank revolver.

Terms of the new deal are:

Issuer: Skechers USA Inc.

Amount: $75 million

Greenshoe: $15 million

Lead Manager: CIBC World Markets

Maturity Date: April 15, 2007

Coupon: 4.5%

Issue Price: par

Yield: 4.5%

Conversion Premium: 20%

Conversion Price: $25.968

Conversion Ratio: 36.509

Call: provisional call for three years with 150% trigger and coupon make-whole

Settlement Date: April 9

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