Issuer: | DSW Inc. | |
Securities: | Up to 4,560,500 Class A Common Shares of DSW Inc. that may be delivered by Retail Ventures on September 15, 2011 (or earlier if exchange is accelerated upon an acceleration following an event of default under the PIES), to holders of Retail Ventures PIES, which are being offered by Retail Ventures by means of a separate prospectus. | |
Maximum aggregate number of shares deliverable upon exchange of the PIES: | Under the terms of the PIES, Retail Ventures will have an obligation to deliver (unless Retail Ventures elects to settle the PIES in cash), on September 15, 2011 (or earlier if exchange is accelerated), a maximum of 1.8242 of the Issuers Class A Common Shares per $50 principal amount of PIES, and a maximum of 4,560,500 of the Issuers Class A Common Shares in the aggregate, subject to exchange adjustments as provided in the PIES. | |
To the extent that the underwriter for Retail Ventures offering of PIES exercises in full its option to purchase additional PIES, this free writing prospectus will relate to up to an additional 684,075 of the Issuers Class A Common Shares. | ||
Security interest: | The Issuer has been further advised by Retail Ventures that it will initially pledge for the benefit of the holders of the PIES 4,560,500 of the Issuers Class B Common Shares held by Retail Ventures pursuant to the terms of a collateral agreement between Retail Ventures and HSBC Bank USA, National Association, as collateral agent. | |
Exchange: | The Issuer has been advised by Retail Ventures that, on the maturity date of the PIES or any earlier date on which Retail Ventures shall be obligated to deliver the Issuers Class A |
Common Shares in exchange for the PIES (referred to as an exchange date), it will deliver with respect to each $50 in principal amount of PIES, a number of the Issuers Class A Common Shares equal to an exchange ratio calculated as follows: | ||
*If the applicable market value (as defined in the indenture governing the PIES) of the Issuers Class A Common Shares is equal to or greater than the threshold appreciation price of $34.95, which is 27.5% above the initial price of $27.41, the exchange ratio will be 1.4306 Class A Common Shares. | ||
*If the applicable market value of the Issuers Class A Common Shares is less than the threshold appreciation price but greater than the initial price, the exchange ratio will be equal to $50 divided by the applicable market value, which is between 1.4306 and 1.8242 Class A Common Shares. | ||
*If the applicable market value of the Issuers Class A Common Shares is less than or equal to the initial price, the exchange ratio will be 1.8242 Class A Common Shares. | ||
New York Stock Exchange Symbol for the DSW Class A Common Shares: | DSW |