Knoll Announces Closing of $164.0 Million Convertible Preferred Equity Investment

Rhea-AI Summary

Knoll, Inc. (NYSE: KNL) has completed a significant financial transaction, acquiring $164 million in convertible preferred stock from an independently managed subsidiary of Investindustrial VII L.P. This convertible preferred stock has an initial conversion price of $16.75 per share and offers a 4.50% dividend, payable either in cash or in-kind for the first two years. The company plans to utilize the net proceeds for general corporate purposes, particularly to reduce existing borrowings under its credit facility.

Positive

• Acquisition of $164 million in convertible preferred stock to enhance financial positioning.
• 4.50% dividend rate provides attractive returns for preferred stockholders.
• Proceeds aimed at reducing outstanding borrowings, improving financial stability.

Negative

• None.

EAST GREENVILLE, Pa., July 21, 2020 (GLOBE NEWSWIRE) -- Knoll, Inc. (NYSE: KNL) today announced the closing of the previously announced purchase of $164.0 million in convertible preferred stock by an independently managed subsidiary of Investindustrial VII L.P.

As previously announced, transaction terms follow:

• $164.0 million of convertible, perpetual preferred stock, which will be convertible into shares of Knoll, Inc. common stock at an initial conversion price of $16.75 per share.
   
• The preferred stock carries a 4.50% dividend, which will be payable at Knoll’s option in cash or in-kind for the first 2 years and payable in cash thereafter.

Knoll expects to use the net proceeds from the transaction for general corporate purposes, including to reduce outstanding borrowings under its credit facility.

About Knoll

Knoll, Inc. is a constellation of design-driven brands and people, working together with our clients to create inspired modern interiors.  Our internationally recognized portfolio includes furniture, textiles, leathers, lighting, accessories, and architectural and acoustical elements.  Our brands — Knoll Office, KnollStudio, KnollTextiles, KnollExtra, Spinneybeck | FilzFelt, Edelman Leather, HOLLY HUNT, DatesWeiser, Muuto, and Fully — reflect our commitment to modern design that meets the diverse requirements of high-performance workplaces and luxury interiors.  A recipient of the National Design Award for Corporate and Institutional Achievement from the Smithsonian's Cooper-Hewitt, National Design Museum, Knoll, Inc. is aligned with the U.S. Green Building Council and the Canadian Green Building Council and can help organizations achieve the Leadership in Energy and Environmental Design (LEED) workplace certification.  Our products can also help clients comply with the International Living Future Institute to achieve Living Building Challenge Certification, and with the International WELL Building Institute to attain WELL Building Certification.  Knoll, Inc. is the founding sponsor of the World Monuments Fund Modernism at Risk program.

Investors:

Charles Rayfield
Senior Vice President and Chief Financial Officer
Tel 215 679-1703
crayfield@knoll.com

Media:

David E. Bright
Senior Vice President, Communications
Tel 212 343-4135
dbright@knoll.com

 

FAQ

What is the purpose of Knoll's $164 million convertible preferred stock purchase?

Knoll plans to use the proceeds for general corporate purposes, particularly to reduce outstanding borrowings under its credit facility.

What are the terms of the preferred stock purchased by Knoll?

The preferred stock carries a 4.50% dividend and can be converted into common stock at an initial price of $16.75 per share.

When was the announcement of Knoll's preferred stock acquisition made?

The announcement was made on July 21, 2020.

Who is managing the preferred stock purchase for Knoll?

The purchase was made by an independently managed subsidiary of Investindustrial VII L.P.