RH is looking into a $300 million notes offering to pay down debt

Restoration Hardware signage is displayed on a monitor of the floor of the New York Stock Exchange in New York, Feb. 24, 2017.Michael Nagle | Bloomberg | Getty ImagesRH, formerly known as Restoration Hardware, announced Thursday it is considering a $300 million convertible notes offering due in 2024.The proceeds from the offering would be used to retire the company’s $200 million of outstanding debt, the company said in a press release. The move could lower interest expenses by about $6.5 million in the back half of fiscal 2019. If it goes through with the offering, the lower interest expense would allow it to boost its earnings forecast¬† between 20 cents and 25 cents per share this year and between 65 cents and 70 cents per share in fiscal 2020. RH recently reported second-quarter earnings that beat expectations. It earned $3.20 per share, excluding items, on revenue of $707 million, topping estimates that called for earnings of $2.70 per share on $697.8 million in revenue.The home furnishings company has also made moves to diversify its offerings, including introducing RH Beach House, a collection of coastal living furnishings.Before the trading of the stock halted, it had already risen 3% and hit a 52-week high. Its stock is up 44% since the beginning of the year, bringing it to a market cap of $3.2 billion.Let’s block ads! (Why?)