Linens 'n Things to Meet Buyout Conditions
Linens 'n Things (LIN) soared early Wednesday after the company said it expects to meet two conditions that were required by private equity investors who agreed last month to take the retailer private.
Linens 'n Things said it expects its same-store sales decline in the fourth quarter of this year to be narrower than 6%. The company also expects to produce earnings before interest, taxes, depreciation and amortization of more than $140 million for the fiscal year ending Sunday.
Both milestones were insisted upon by Apollo Management when it agreed to acquire Linens 'n Things for $1.3 billion, or $28 a share, on Nov. 8. Linens 'n Things said Tuesday that it has scheduled a special shareholders' meeting to vote on the buyout for Jan. 30.
"The definitive proxy statement being filed today reflects the company's belief, based on improved sales trends, that it will satisfy the net comparable sales condition. Today's filing also reflects the company's belief that it will satisfy the minimum EBITDA condition to the debt financing," the company said.On Instinet, the company's shares rose $2.59, or 10.8%, to $26.50. Get Jim Cramer's picks for 2006.
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