Signet Jewelers repurchases convertible preferred shares

Signet Jewelers and Leonard Green & Partners announced the amendment of the terms of the Series A Convertible Preference Shares to net share settlement and the repurchase of half of the Preferred Shares. The Preferred Shares, scheduled to mature in November 2024, were convertible into approximately 8.2 million Signet common shares. Signet will repurchase half of the Preferred Shares for approximately $414 million in cash, based on the volume weighted average share price on the date of the transaction signing, April 1, 2024, including accrued dividends, and is expected to be settled within 10 business days. Following the transaction there will be $328 million remaining in stated value of the Preferred Shares which carry a dividend of 5.0%. This transaction will immediately reduce Signet’s diluted share count by approximately 4.1 million shares, or 7.6% of Signet’s diluted share count. Signet will settle the transaction from the $1.4 billion in cash on hand at the end of Fiscal 2024. During the first quarter of Fiscal 2025, the Company will record a reduction to GAAP net income attributable to common shareholders of approximately $83 million as a deemed dividend. This deemed dividend reflects the excess of the above one-time cash payment over the carrying value of the Preferred Shares at the date of the transaction.