American Eagle Outfitters announces moves to strengthen capital structure including $200 million ASR agreement

American Eagle Outfitters Inc. shares rose 0.8% premarket Friday, after the company announced a series of moves to strengthen its capital structure. The teen apparel retailer said it has entered an accelerated share buyback agreement with JP Morgan Chase for $200 million of its stock. That’s equal to about 16.7 million shares based on the closing price Thursday, or about 8% of its fully diluted shares outstanding at that date. The company has also entered exchange agreements with certain holders of its 3.75% convertible senior notes that mature in 2025. The notes represent about $342 million of the outstanding prinicipal amount, and will leave just $70 million remaining once the deal closes. The company is also seeking to upsize and extend an ABL facility to $600 million with a five-year term to unlock additional liquidity. Shares have fallen 53% in the year to date, while the S&P 500 has fallen 12%.

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