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BOULDER, Colo. -- Wild Oats Markets, Inc. today announced the pricing of the $100.0 million principal amount of its convertible senior debentures due 2034.
The debentures are being sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In addition, Wild Oats granted the initial purchasers an option to buy up to an additional $15.0 million principal amount of the debentures.
The debentures have a principal amount of $1,000 per debenture and will bear regular interest at the annual rate of 3.25 percent until May 15, 2011, payable on May 15 and Nov. 15 of each year, beginning on Nov. 15 of this year. After May 15, 2011 the company will not pay regular interest on the debentures. The company will pay contingent interest to the holders of the debentures for the period starting May 20, 2011 and ending Nov. 14, 2011, if the average trading price of a debenture for each of the last five trading days immediately preceding May 20, 2011 equals 125 percent or more of the principal amount of the debenture. Thereafter, Wild Oats will pay additional contingent interest during a six-month interest period, if the average trading price of the debentures during the five-trading-day period immediately preceding the first day of the interest period equals or exceeds 125 percent of the 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, the company will use about $25 million of the net proceeds to repurchase, through one of the initial purchasers, approximately 2 million shares of its outstanding common stock.