Sotheby’s To Issue Bonds
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
Sotheby’s, the world’s largest publicly traded auctioneer of art and collectibles, plans to sell $300 million of bonds.
Sotheby’s plans to offer $150 million of senior unsecured convertible notes due in 2013 and $150 million of senior unsecured notes due in 2015, the New York-based company said today in a statement posted on its Web site.
Interest rates, the conversion rate on the convertible notes, and the offering prices haven’t been determined, the company said.
Sotheby’s, which reported a net loss of $12.4 million in the first quarter on declining auction sales, said it will use proceeds to finance the acquisition of its property on York Avenue in New York and to redeem $100 million of 6.875% notes due in 2009.
Initial investors of the convertible notes will have the option to purchase an additional $22.5 million to cover any over-allotments, the company said.
