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BOULDER, Colo. - Wild Oats Markets, Inc. today announced the completion of its offering of $100 million in principal amount of 3.25 percent convertible senior debentures.
The debentures will be convertible into the grocer's common stock, at the option of the holders, at an initial rate equivalent to a conversion price of $17.70 per share. The debentures may be redeemed by Wild Oats, beginning May 20, 2011. In addition, the company has granted the initial purchasers an option to buy up to an additional $15.0 million principal amount of the debentures.
Wild Oats plans to use proceeds of the offering to accelerate its growth plans and for general corporate purposes, in addition to allocating $25 million of gross proceeds toward the purchase of company stock. The purchase was executed May 26.
The offering will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933.