Another private placement:
Restoration Hardware in $24.5 mln stock placement
NEW YORK, May 21 (Reuters) - Restoration Hardware Inc. <RSTO.O>, a California retailer, on Monday said it completed a $24.5 million private placement of its common stock to fund a proposed restructuring and implement its new merchandise strategy.
Shares of Restoration surged to a new 52-week high of $7.36, before trading up $1.07, or about 17.89 percent, at $7.05 in mid-afternoon Nasdaq trading. The stock's previous 52-week range was 50 cents to $6.75.
The Corte Madera, California-based retailer, which in March snagged the former president of rival home goods retailer Williams-Sonoma Inc. <WSM.N> as its new chief executive, said it sold its common stock at $5.43 a share, matching the closing market price on May 16.
The private placement was led by a group of institutional investors, including funds managed by Capital Research and Management Co., Fidelity Management and Research Co., Baron Asset Management, Apex Capital LLC and Buckingham RAF Partners LP.
"This capital infusion combined with the $15 million raised in March and our amended bank agreement gives us the financial flexibility to execute our repositioning strategy," Restoration CEO Gary Friedman said in a statement.
Friedman said the company, as announced last year, is focused on implementing a new merchandise strategy, closing some of its underperforming stores and strengthening its management team.
15:02 05-21-01 |
