(Source: PRNewswire-FirstCall)

NEW YORK, June 18 /PRNewswire-FirstCall/ -- Liz Claiborne, Inc. (the "Company") today announced the pricing of $75 million of 6% convertible senior notes due 2014 (the "notes"). In addition, the Company has granted the initial purchasers the option to purchase up to an additional $15 million of notes on the same terms and conditions to cover over-allotments, if any.
A prior release that was issued in error stated that the over-allotment option had been exercised. It has not been exercised.
The notes are unsecured, senior obligations of the Company, will pay interest semi-annually at a rate of 6% per annum and will mature on June 15, 2014. The conversion rate will initially be 279.6421 shares of the Company's common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $3.576 per share of common stock), subject to adjustment in certain circumstances. The initial conversion price represents a conversion premium of 20% over the last reported sale price of the Company's common stock on June 18, 2009 of $2.98 per share. Holders of the notes may convert their notes at their option under certain circumstances. Upon conversion, the Company will deliver cash, shares of the Company's common stock, or a combination of cash and shares, at the option of the Company. Holders of the notes may require the Company to repurchase for cash all or some of their notes upon the occurrence of a fundamental change (as defined). The conversion rate will be subject to a "conversion rate cap" in accordance with the rules of the NYSE. The Company anticipates closing the offering of the notes on June 24, 2009.
The Company intends to use the net proceeds from the offering (including proceeds from the initial purchasers' exercise of the over-allotment option, if any) to temporarily pay down a portion of the outstanding borrowings under its amended credit facility.
The notes will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes or any other securities, nor will there be any sale of notes or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.