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(Registrant's Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
i☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
i☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
i☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
i☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title
of each class
Trading Symbol(s)
Name of each exchange on which registered
iCommon Stock, $0.01 par value
iDKS
iThe
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company i☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
ITEM
1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On September 26, 2022, DICK’S Sporting Goods, Inc. (the “Company”) entered into a partial unwind agreement with a financial institution (the “Hedge Counterparty”) relating to a portion of the convertible note hedge transaction (the “Note Hedge Partial Early Termination Agreement”) and a portion of the warrant transaction (the “Warrant Partial Early Termination Agreement”) that were previously entered into by the Company with such Hedge Counterparty in connection with the issuance of its 3.25% Convertible Senior Notes due 2025 (the “2025 Notes”) in an aggregate principal amount of $575 million. The Note Hedge Partial Early Termination Agreement relates to a number of call options
corresponding to a portion of the number of 2025 Notes subject to exchange pursuant to the Exchange Agreements described below (the “Exchanged Notes”), and the Warrant Partial Early Termination Agreement relates to a portion of the number of warrants corresponding to the number of shares of the Company’s common stock underlying such Exchanged Notes. Pursuant to the Note Hedge Partial Early Termination Agreement and the Warrant Partial Early Termination Agreement (together, the “Partial Early Termination Agreements”), the Hedge Counterparty will deliver to the Company a number of shares of the Company’s common stock in respect of the portion of the call option transaction and warrant transaction being
early terminated thereunder, which number of shares will be determined based upon the volume-weighted average price per share of the Company’s common stock during an averaging period, commencing on September 27, 2022.
The foregoing description of the Partial Early Termination Agreements does not purport to be complete and is qualified in its entirety by reference to the full text of the form of Note Hedge Partial Early Termination Agreement and the form of Warrant Partial Early Termination Agreement, copies of which are filed with this Current Report on Form 8-K as Exhibits 10.1 and 10.2, respectively, and are incorporated herein by reference.
HudsonWest LLC,
a full-service independent equity derivatives and convertible securities advisory firm, acted as financial advisor to the Company on the call spread terminations and the exchange transactions described below.
ITEM 3.02. UNREGISTERED SALE OF EQUITY SECURITIES
On September 26, 2022, the Company entered into exchange agreements (the “Exchange Agreements” and each, an “Exchange Agreement”) with certain holders (the “Noteholders”) of the 2025 Notes. The Noteholders have agreed
to exchange $120,558,000 in aggregate principal amount of the Company’s outstanding 2025 Notes for a combination of cash and shares of the Company’s common stock. The total number of shares of common stock to be issued by the Company to the Noteholders will be determined based upon the volume-weighted average price per share of the Company’s common stock during an averaging period commencing on September 27, 2022.
The Company’s shares
of common stock to be issued in connection with the exchange will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and will be issued in reliance on the exemption from the registration requirements thereof provided by Section 4(a)(2) of the Securities Act in a transaction by an issuer not involving a public offering.
The 2025 Notes to be exchanged represent approximately 43.84% of the outstanding principal amount. Following the exchange, approximately $154 million in aggregate principal amount of 2025 Notes will remain outstanding, and the Company’s annual interest payments will be reduced by $3,918,135.
The foregoing description of the Exchange Agreement does not purport to be complete and is qualified in its entirety
by reference to the full text of the form of Exchange Agreement, a copy of which is filed with this Current Report on Form 8-K as Exhibit 10.3 and is incorporated herein by reference.
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
