Restoration Hardware will sell $300 million of convertible senior notes due 2019. Initial buyers will have the option to buy up to an additional $50 million in senior notes.
The company plans to use the proceeds from the offering for business initiative that include "the continuing transformation of its real estate platform," paying down higher interest borrowings, and strengthening its balance sheet over the next five years.
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TheStreet Ratings team rates RESTORATION HARDWARE HLDNGS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RESTORATION HARDWARE HLDNGS (RH) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows: