April 2022 through April 2023
Case Study

DICK’S Sporting
Goods

DICK’S Sporting Goods is the largest sporting goods retailer in the United States, offering a broad selection of brand-name sporting goods, apparel, and footwear.

Transaction Terms
Transaction
$575MM Convertible Note Exchanges & Call Spread Unwinds
Security
3.25% Convertible Senior Notes due 2025
Mandates
7 Separate Transactions
Timeline
April 2022 – April 2023
7
Separate transactions
across 13 months
$575MM
Convertible notes
fully retired
$515MM
Notes privately repurchased
in six tranches
Situation Overview

Carefully constructed
convertible retirement

In April 2020, DICK’S issued a $575 million convertible bond due 2025, hedged with a call spread. Following a nearly 4x stock price increase by early 2022, DICK’S engaged HudsonWest to evaluate its options.

HudsonWest’s Role

Seven well-synchronized
liability management transactions

01
Strategic Review

Working closely with management, HudsonWest evaluated different methods of retiring the securities and the corresponding call spread.

02
Seven Transactions

Beginning in April 2022, HudsonWest wall-crossed the largest noteholders and negotiated with call spread counterparties across six transactions — achieving company-friendly pricing each time and retiring $515.8 million of notes.

03
Full Retirement

With the notes' redemption in April 2023, DICK’S retired the entirety of its $575 million of convertible notes and fully unwound its call spread, mitigating further dilution and moving toward the straight debt markets.

Get In Touch

Let's start a
conversation.

HudsonWest brings the same independence and depth to every engagement.

Get in Touch All Clients