Sotheby's buys back $21.8 million in 7¾% senior notes due 2015

By Devika Patel

Knoxville, Tenn., Feb. 9 - Sotheby's repurchased $21.8 million of its $150 million outstanding 7¾% senior notes due June 15, 2015 for $12.1 million, according to an 8-K filed Monday with the Securities and Exchange Commission.

On Dec. 23, the company repurchased $19 million of the notes for $10.5 million. This resulted in a non-cash gain of approximately $8 million. Additionally, the company will realize annual interest expense savings of approximately $1.5 million.

On Jan. 27, Sotheby's bought back an additional $2.8 million of the notes for $1.6 million. This resulted in a non-cash gain of approximately $1.1 million.

The purchase price for these repurchases represented an average cost of $0.56 on the dollar.

The pre-tax gain associated with these repurchases was $9.1 million.

The company said it will continue to monitor the market and may purchase additional bonds when the pricing is favorable.

New York's Sotheby's is an auctioneer of fine art, antiques and decorative art, jewelry and collectibles.

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