Kate Spade to redeem up to $37.2 million 10½% notes at 103 on April 14

By Susanna Moon

Chicago, March 14 - Kate Spade & Co. will redeem up to $37.2 million principal amount of its 10½% senior secured notes due April 2019.

The notes will be redeemed at 103 on April 14, according to an 8-K filing with the Securities and Exchange Commission.

The redemption is conditioned on the company obtaining a new financing arrangement with lenders with enough proceeds to fund the purchase.

Kate Spade said on March 13 that no notes were tendered under the purchase offer for up to $75 million of the notes, which began on Feb. 5 and expired on March 7.

The company offered to purchase the notes at par plus accrued interest to the payment date.

The purchase offer was made in connection with the company's sale of all issued and outstanding equity interests of wholly owned subsidiary Lucky Brand Dungarees, Inc., completed on Feb. 3.

Because no notes were tendered, the entire $75 million of proceeds from the asset sale was released from the collateral proceeds account and is available for the company to use in any way permitted by the notes' indenture. The company said it expects to use the proceeds for general corporate purposes.

Kate Spade, formerly known as Fifth & Pacific Cos., Inc., is a clothing company based in New York.

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