RH Raises Fiscal Year Earnings Guidance

RH is raising its fiscal year adjusted diluted earnings per share guidance after the closing of a convertible notes offering.

The company said it closed on the sale of $350 million aggregate principal amount of its 0.00% convertible notes due 2024, including the full exercise of the $50 million over-allotment option.

As previously announced, RH will apply proceeds from the offering to retire the company’s $200 million of outstanding second lien debt as well as reduce outstanding borrowings under its credit facilities.

Based upon the final terms of the convertible notes offering and the reduction in outstanding balances of debt bearing higher interest rates than the 0% convertible notes, the company is raising its fiscal year 2019 adjusted diluted earnings per share guidance by $0.25 to a range of $10.78 to $11.01, and expects an approximate $0.75 per share benefit to adjusted diluted earnings per share in fiscal 2020.