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June 3, 2022, 7:10 a.m. EDT

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

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By Ciara Linnane

American Eagle Outfitters Inc. /zigman2/quotes/209429711/composite AEO +3.12% 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 /zigman2/quotes/210599714/realtime SPX +0.23% has fallen 12%.

/zigman2/quotes/209429711/composite
US : U.S.: NYSE
$ 13.56
+0.41 +3.12%
Volume: 6.11M
Aug. 18, 2022 4:00p
P/E Ratio
7.90
Dividend Yield
5.31%
Market Cap
$2.23 billion
Rev. per Employee
$123,314
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/zigman2/quotes/210599714/realtime
US : S&P US
4,283.74
+9.70 +0.23%
Volume: 2.22B
Aug. 18, 2022 5:48p
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