New York—Delia’s Inc. plans to raise $13.7 million in an underwritten public offering of common stock and sell $21.8 million in debt.
The teen retailer said the stock offering consists of 13.065 million shares of common stock priced at $1.05 a share. The company also granted underwriters the option to purchase an additional 1.96 million shares.
The offering is expected to close on July 31, subject to the satisfaction of customary closing conditions.
Delia’s plans to use the net proceeds from the offering to repay a portion of the outstanding amounts under its existing credit agreement with Salus Capital Partners LLC and for working capital and other general corporate purposes.
In a separate statement, Delia’s also agreed to sell $21.8 million in principal amount of 7.25 percent convertible notes in a private placement. The notes will convert into 20.7 million shares of the company’s common stock, upon stockholder approval.
The private placement is expected to close on or about July 31.
Delia’s Inc. operates 104 dELiA*s stores in 33 states. For the fiscal year 2013, the Company reported revenues of $222.7 million, a 2.6% increase from $217.2 million in reported in fiscal year 2012. The company also reported losses of $21.554 million and $22.670 million in each of those respective fiscal years.
In June, dELiA*s announced the sale of its Alloy brand to HRSH Acquisitions for $3.7 million. In May, dELiA*s named retail veteran Tracy Gardner as new chief executive officer, replacing Walter Kilough, who currently serves as chief pperating officer. Earlier this year, Gardner joined the company as chief creative officer.