Signet Jewelers announces closing of $625M Leonard Green strategic investment
Signet Jewelers Limited announced that it has closed the previously announced transaction with Leonard Green & Partners, L.P. , pursuant to which affiliates of LGP invested $625M in the form of convertible preferred shares. In connection with the closing of the transaction, Jonathan Sokoloff, Managing Partner of LGP, was added to the Signet board of directors. The investment in Signet by certain funds affiliated with LGP is in the form of convertible preferred shares that accrue a 5% p.a. dividend, payable quarterly in arrears, in cash or by increasing the stated value, at the option of Signet. The preference shares are convertible into 6.7 million Signet common shares based on a conversion price of $93.8712. This represents a premium of 18% to the volume weighted average price of the common shares for the 20 trading days following Signet's second quarter earnings announcement on August 25, 2016. LGP will be subject to a two-year lock-up period and Signet will also have the right to force conversion after two years if the volume weighted average price of Signet common shares is greater than $164.2746 for 20 consecutive trading days.