Alloy Affirms Guidance, Proposes Debt Sale

Alloy (ALOY Quote), a media and direct marketing company, affirmed its guidance for the second quarter and fiscal year and said it plans to sell $60 million of debt.

In May the company projected fiscal-year sponsorship and other revenue of $195 million to $205 million. Alloy forecast second-quarter merchandise revenue of $30 million to $32 million and sponsorship and other revenue between $45 million and $47 million.

The company said its second-quarter loss would be 2 cents to 6 cents a share.

Alloy's second quarter ends July 31, and its fiscal year will close Jan. 31. Alloy expects to report its second-quarter results during the week of Aug. 25.

Shares of Alloy were losing 55 cents, or 6.9%, to $7.40 in Instinet trading after the closing bell, but volume was light.

The company also said it wants to issue $60 million of convertible senior debentures due 2023. Alloy plans to use a significant portion of the proceeds for acquisitions, potentially in both its merchandising and sponsorship businesses, and the rest for working capital, capital expenditures and general corporate purposes.

Alloy expects to grant the initial purchasers of the debt a 30-day option to buy up to $12 million more of the debentures.