National Vision Holdings, Inc. Announces Repurchase of $218 Million of Convertible Notes and Borrowing of $115 Million in Incremental Term Loans
National Vision Holdings, Inc. (NASDAQ: EYE) has announced plans to repurchase approximately $218 million of its 2.50% Convertible Senior Notes due 2025 for a cash price of about $215 million plus accrued interest. To fund this, the company has secured commitments for $115 million in incremental term loans, expected to close on August 9, 2024. The repurchase is set to close around August 12, 2024, leaving about $85 million in 2025 Notes outstanding.
CFO Melissa Rasmussen stated that this opportunistic repurchase is expected to strengthen the company's balance sheet and aligns with their disciplined capital allocation plan. National Vision aims to continue making prudent decisions to build a foundation for profitable growth.
National Vision Holdings, Inc. (NASDAQ: EYE) ha annunciato piani per riacquistare circa 218 milioni di dollari dei suoi Obbligazioni Seniores Convertibili al 2,50% in scadenza nel 2025 per un prezzo in contante di circa 215 milioni di dollari più interessi maturati. Per finanziare questo, l'azienda ha ottenuto impegni per 115 milioni di dollari in prestiti di nuova emissione, previsti per chiudere il 9 agosto 2024. Il riacquisto è previsto per chiudere attorno al 12 agosto 2024, lasciando circa 85 milioni di dollari in Obbligazioni 2025 ancora in circolazione.
Il CFO Melissa Rasmussen ha dichiarato che questo riacquisto opportunistico è destinato a rafforzare il bilancio dell'azienda e si allinea con il loro piano di allocazione del capitale disciplinato. National Vision mira a continuare a prendere decisioni prudenti per costruire una base per una crescita redditizia.
National Vision Holdings, Inc. (NASDAQ: EYE) ha anunciado planes para recomprar aproximadamente 218 millones de dólares de sus Notas Senior Convertibles al 2,50% que vencen en 2025 por un precio en efectivo de alrededor de 215 millones de dólares más intereses acumulados. Para financiar esto, la compañía ha asegurado compromisos por 115 millones de dólares en préstamos adicionales, que se espera cierren el 9 de agosto de 2024. La recompra se cerrará alrededor del 12 de agosto de 2024, dejando alrededor de 85 millones de dólares en Notas 2025 pendientes.
La CFO Melissa Rasmussen declaró que esta recompra oportunista se espera que fortalezca el balance de la compañía y se alinea con su plan disciplinado de asignación de capital. National Vision tiene como objetivo seguir tomando decisiones prudentes para construir una base para un crecimiento rentable.
National Vision Holdings, Inc. (NASDAQ: EYE)는 약 2억 1800만 달러 규모의 2.50% 전환 우선 채권을 2025년에 만기 도래하는 채권을 현금 가격으로 약 2억 1500만 달러와 발생 이자를 포함하여 재매입할 계획이라고 발표했습니다. 이를 위해 회사는 1억 1500만 달러의 추가 대출에 대한 약정을 확보했으며, 2024년 8월 9일에 마감될 예정입니다. 재매입은 2024년 8월 12일경에 마감될 예정이며, 약 8500만 달러의 2025년 채권이 여전히 남아있을 것입니다.
CFO 멜리사 라스무센은 이 기회 있는 재매입이 회사의 재무 상태를 강화하는 데 도움이 될 것이며, 그들의 규범적인 자본 배분 계획과 일치한다고 말했습니다. National Vision은 수익성 있는 성장을 위한 기반을 구축하기 위해 신중한 결정을 계속 내릴 계획입니다.
National Vision Holdings, Inc. (NASDAQ: EYE) a annoncé des plans pour racheter environ 218 millions de dollars de ses Obligations Senior Convertibles à 2,50% arrivant à échéance en 2025 pour un prix en espèces d'environ 215 millions de dollars plus intérêts courus. Pour financer cela, la société a obtenu des engagements pour 115 millions de dollars de prêts supplémentaires, dont la clôture est prévue pour le 9 août 2024. Le rachat devrait se clôturer autour du 12 août 2024, laissant environ 85 millions de dollars d'Obligations 2025 encore en circulation.
La CFO Melissa Rasmussen a déclaré que ce rachat opportun serait susceptible de renforcer le bilan de l'entreprise et s'aligne sur leur plan d'allocation de capital discipliné. National Vision vise à continuer à prendre des décisions prudentes pour établir une base pour une croissance rentable.
National Vision Holdings, Inc. (NASDAQ: EYE) hat Pläne angekündigt, ungefähr 218 Millionen US-Dollar seiner 2,50% wandelbaren Senior Notes, die 2025 fällig werden, zu rückzukaufen, zu einem Barpreis von etwa 215 Millionen US-Dollar zuzüglich aufgelaufener Zinsen. Zur Finanzierung hat das Unternehmen Zusagen für 115 Millionen US-Dollar in zusätzlichen Terminkrediten erhalten, die voraussichtlich am 9. August 2024 abgeschlossen werden. Der Rückkauf soll voraussichtlich rund um den 12. August 2024 abgeschlossen werden, wodurch etwa 85 Millionen US-Dollar an ausstehenden 2025 Notes verbleiben.
CFO Melissa Rasmussen erklärte, dass dieser opportunistische Rückkauf voraussichtlich die Bilanz des Unternehmens stärken werde und mit ihrem disziplinierten Kapitalallokationsplan übereinstimmt. National Vision hat das Ziel, weiterhin fundierte Entscheidungen zu treffen, um eine Grundlage für profitables Wachstum zu schaffen.
- Repurchase of $218 million of Convertible Notes strengthens the balance sheet
- Secured $115 million in incremental term loans to partially fund the repurchase
- Reduction of outstanding convertible debt from $303 million to $85 million
- Increase in term loan debt by $115 million
- Use of cash on hand to fund part of the repurchase
Insights
National Vision's repurchase of
While this restructuring strengthens the balance sheet by reducing potential dilution, it also increases the company's term loan debt. The impact on interest expenses will depend on the difference between the
This financial maneuver by National Vision reflects a broader trend in the retail sector, where companies are taking advantage of current market conditions to optimize their capital structures. By reducing the outstanding convertible notes, National Vision is mitigating potential shareholder dilution that could occur if the notes were converted to equity.
However, the increased term loan debt could impact the company's financial flexibility in the short term. Investors should consider how this might affect National Vision's ability to invest in growth initiatives or respond to market challenges in the competitive eyewear retail space. The company's statement about focusing on a "foundation for profitable growth" suggests a strategic shift towards financial stability over aggressive expansion.
National Vision also announced that it has secured commitments to amend its existing credit agreement (the “Credit Agreement”) to provide for, among other things,
National Vision expects to fund the Repurchase Transactions with the proceeds of the New Term Loans, together with cash on hand.
Melissa Rasmussen, Chief Financial Officer of National Vision, said, “We are pleased to be in a position to complete this opportunistic repurchase of the majority of our remaining 2025 Notes outstanding. We believe the transactions announced today strengthen our balance sheet as we continue to execute a disciplined capital allocation plan, and we remain focused on making prudent decisions that strengthen our foundation for profitable growth.”
The Repurchase Transactions are expected to close on or about August 12, 2024. Following the closing of the Repurchase Transactions, approximately
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor will there be any offer, solicitation, or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About National Vision Holdings, Inc.
National Vision Holdings, Inc. (NASDAQ: EYE) is one of the largest optical retail companies in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. These statements include statements related to our current beliefs and expectations regarding the consummation of the Repurchase Transactions and the amendment to the Credit Agreement. You can identify these forward-looking statements by the use of words such as “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Caution should be taken not to place undue reliance on any forward-looking statement as such statements speak only as of the date when made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. Forward-looking statements are not guarantees and are subject to various risks and uncertainties, which may cause actual results to differ materially from those implied in forward-looking statements. Such factors include, but are not limited to, the termination of our partnership with Walmart, including the transition period and other wind down activities, will have an impact on our business, revenues, profitability and cash flows, which impact could be material; market volatility, an overall decline in the health of the economy and other factors impacting consumer spending, including inflation, uncertainty in financial markets, recessionary conditions, escalated interest rates, the timing and issuance of tax refunds, governmental instability, war and natural disasters, may affect consumer purchases, which could reduce demand for our products and materially harm our sales, profitability and financial condition; failure to recruit and retain vision care professionals for in-store roles or to provide remote care offerings could adversely affect our business, financial condition and results of operations; the optical retail industry is highly competitive, and if we do not compete successfully, our business may be adversely impacted; if we fail to open and operate new stores in a timely and cost-effective manner or fail to successfully enter new markets, our financial performance could be materially and adversely affected; if the performance of our Host brands declines or we are unable to maintain or extend our operating relationships with our Host partners, our business, profitability and cash flows may be adversely affected and we may be required to incur impairment charges; we are a low-cost provider and our business model relies on the low-cost of inputs and factors such as wage rate increases, inflation, cost increases, increases in the price of raw materials and energy prices could have a material adverse effect on our business, financial condition and results of operations; we require significant capital to fund our expanding business, including updating our Enterprise Resource Planning (“ERP”) and Customer Relationship Management (“CRM”), and other technological, systems and capabilities; our growth strategy could strain our existing resources and cause the performance of our existing stores to suffer; our success depends upon our marketing, advertising and promotional efforts and if we are unable to implement them successfully or efficiently, or if our competitors are more effective than we are, we may experience a material adverse effect on our business, financial condition and results of operations; we are subject to risks associated with leasing substantial amounts of space, including future increases in occupancy costs; certain technological advances, greater availability of, or increased consumer preferences for, vision correction alternatives to prescription eyeglasses or contact lenses, or future drug development for the correction of vision-related problems may reduce the demand for our products and adversely impact our business and profitability; if we fail to retain our existing senior management team or attract qualified new personnel such failure could have a material adverse effect on our business, financial condition and results of operations; our profitability and cash flows may be negatively affected if we are not successful in managing our inventory balances and inventory shrinkage; our operating results and inventory levels fluctuate on a seasonal basis; our e-commerce and omni-channel business faces distinct risks, and our failure to successfully manage those risks could have a negative impact on our profitability; we depend on our distribution centers and/or optical laboratories; we may incur losses arising from our investments in technological innovators in the optical retail industry, including artificial intelligence, which would negatively affect our financial results; ESG issues, including those related to climate change, could have a material adverse effect on our business, financial condition and results of operations; changing climate and weather patterns leading to severe weather and disasters may cause significant business interruptions and expenditures; future operational success depends on our ability to develop, maintain and extend relationships with managed vision care companies, vision insurance providers and other third-party payors; we face risks associated with vendors from whom our products are sourced and are dependent on a limited number of suppliers; we rely heavily on our information technology systems, as well as those of our vendors, for our business to effectively operate and to safeguard confidential information; any significant failure, inadequacy, interruption or security breach could adversely affect our business, financial condition and operations; we rely on third-party coverage and reimbursement, including government programs, for an increasing portion of our revenues, the future reduction of which could adversely affect our results of operations; we are subject to extensive state, local and federal vision care and healthcare laws and regulations and failure to adhere to such laws and regulations would adversely affect our business; we are subject to managed vision care laws and regulations; we are subject to rapidly changing and increasingly stringent laws, regulations, contractual obligations, and industry standards relating to privacy, data security and data protection which could subject us to liabilities that adversely affect our business, operations and financial performance; we could be adversely affected by product liability, product recall or personal injury issues; failure to comply with laws, regulations and enforcement activities or changes in statutory, regulatory, accounting and other legal requirements could potentially impact our operating and financial results; adverse judgments or settlements resulting from legal proceedings relating to our business operations could materially adversely affect our business, financial condition and results of operations; we may not be able to adequately protect our intellectual property, which could harm the value of our brand and adversely affect our business; we have a significant amount of indebtedness which could adversely affect our business and financial position, including limiting our business flexibility and preventing us from meeting our debt obligations; a change in interest rates may adversely affect our business; our credit agreement contains restrictions that limit our flexibility in operating our business; conversion of the 2025 Notes could dilute the ownership interest of existing stockholders or may otherwise depress the price of our common stock; and risks related to owning our common stock, including our ability to comply with requirements to design and implement and maintain effective internal controls. Additional information about these and other factors that could cause National Vision’s results to differ materially from those described in the forward-looking statements can be found in filings by National Vision with the Securities and Exchange Commission (“SEC”), including our latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC.
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Investor:
investor.relations@nationalvision.com
National Vision Holdings, Inc.
Tamara Gonzalez
ICR, Inc.
Caitlin Churchill
Media:
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National Vision Holdings, Inc.
Racheal Peters
Source: National Vision Holdings, Inc.
FAQ
How much of its 2025 Convertible Notes is National Vision Holdings (EYE) repurchasing?
When is the repurchase of Convertible Notes by National Vision (EYE) expected to close?
How much in incremental term loans has National Vision (EYE) secured commitments for?
What will be the outstanding amount of 2025 Notes for National Vision (EYE) after the repurchase?
