NEW YORK, Sept. 21, 2012 (GLOBE NEWSWIRE) -- Sotheby's (NYSE:BID) today announced the pricing of $300 million of its senior unsecured notes due 2022 through an offering to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and to non-U.S. persons under Regulation S under the Securities Act. The closing of the offering is expected to occur on or about September 27, 2012. The notes will be sold to investors at a price of 100% of the principal amount thereof, plus accrued interest from September 27, 2012. The notes will pay interest semiannually at a rate of 5.25% per annum and will mature on October 1, 2022. Sotheby's expects to use the net proceeds from this offering to redeem all of its outstanding 7.75% Senior Notes due 2015 at the make-whole premium specified in the indenture governing those notes and for general corporate purposes, including the potential repayment of other existing indebtedness. The notes have not been registered under the Securities Act or any state securities laws. As a result, they may not be offered or sold in the United States or to any U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Under Rule 15c6-1 under the Securities Exchange Act of 1934, trades in the secondary market generally are required to settle in three business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade the notes prior to the third business day before the delivery of the notes will be required, by virtue of the fact that the notes initially will settle on a delayed basis, to agree to a delayed settlement cycle at the time of any trade to prevent a failed settlement. Purchasers of the notes who wish to make such trades should consult their own advisors.
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, nor shall there be any sale of the notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. This announcement does not constitute a notice of redemption of the 7.75% Senior Notes due 2015.About Sotheby's Sotheby's is a global company that engages in art auction, private sales and art-related financing activities. The Company operates in 40 countries, with principal salesrooms located in New York, London, Hong Kong and Paris. The Company also regularly conducts auctions in seven other salesrooms around the world. Sotheby's is listed on the New York Stock Exchange under the symbol BID. Forward-looking Statements This release contains certain "forward-looking statements" (as such term is defined in the Securities and Exchange Act of 1934, as amended) relating to future events and the financial performance of the Company. Such statements are only predictions and involve risks and uncertainties, resulting in the possibility that the actual events or performances will differ materially from such predictions. Major factors, which the Company believes could cause actual events to differ materially from those suggested by the "forward-looking statements" include, but are not limited to, the overall strength of the international economy and financial markets. Please refer to our most recently filed Form 10-Q (and/or 10-K) for a complete list of Risk Factors.
CONTACT: Press Department 212 606 7176 Andrew Gully Andrew.Gully@Sothebys.com Investor Relations 212 894 1023 Jennifer Park Jennifer.Park@Sothebys.com