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Repasch to Oversee ShopNBC Jewelry, Watch Strategy

Redeems Outstanding 12% Series B Preferred Stock

Apr 7, 2011 11:49 AM   By Jeff Miller
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RAPAPORT... ShopNBC appointed multichannel retail veteran Annette Repasch as vice president of soft lines, which includes the jewelry division.  The appointment takes effect May 2, and Repasch will be reporting to ShopNBC president Bob Ayd.

Repasch will oversee merchandising strategy and product development for the categories of jewelry and watches, health and beauty, and fashion and accessories. She will join ShopNBC, the main subsidiary of ValueVision Media,  from Stages Stores Inc., where she served as senior vice president and general merchandise manager. Repasch previously served under a similar title at  QVC.

"Annette is an outstanding merchandising executive with extensive experience and a proven track record of delivering results both strategically and creatively," said  Ayd. "She has tremendous passion for our industry and for the customer. I've had the pleasure of working with her in the past, and now look forward to her contributions in driving the business and as a valued addition to our leadership team."

Repasch commented, "The opportunity to return to multichannel retail and join the impressive team at ValueVision was just an offer I could not refuse, particularly given the game-changing potential of Internet and mobile shopping. ShopNBC has executed a remarkable operational and financial turnaround the past two years. I couldn't be more excited to join Bob, Keith and the whole team as they turn their full focus to merchandising strategies to drive long term growth across their TV, Internet and mobile platforms."

Repasch is being granted inducement stock options as of May 2, covering the right to purchase 100,000 shares of the company's common stock. The options will have an exercise price equal to the closing price  on the date of the grant.

In an unrelated announcement,  ValueVision Media  redeemed all of its outstanding 12 percent Series B redeemable preferred stock for $40.9 million and has paid all accrued Series B preferred dividends, amounting to $6.4 million. The preferred stock was held by GE Capital Equity Investments Inc.

The preferred stock redemption eliminates $17.5 million in future dividend payments and was funded by proceeds from the recent sale of 9,487,500 shares of common stock at $6.25 per share. Net proceeds from the offering, after commissions and offering expenses, were $55.6 million. Additionally, $8.3 million of the offering proceeds are available to ValueVision for working capital and general corporate purposes.

ValueVision will incur a one-time, non-cash charge of $24.5 million in first quarter of  2011, representing accelerated amortization of the preferred stock discount. This expense would otherwise have been realized over the remaining term of the preferred stock, which was required to be redeemed in February 2013  and February 2014.

Keith Stewart,  ValueVision Media's chief executive, stated,  "The recent stock offering achieved several important objectives that support our growth goals. We strengthened our balance sheet and financial flexibility by removing the high cost Series B preferred from our capital structure, thereby eliminating $17.5 million in future dividend payments. We also expanded our investment community visibility and base of shareholders, supporting the long-term liquidity of our shares."

 

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Tags: financial, Jeff Miller, ShopNBC, stocks, valuevision
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