Sector Update: Consumer
Consumer stocks were mostly lower with shares of consumer staples companies in the S&P 500 slipping about 1.7%. Shares of consumer discretionary firms in the S&P 500 also were down 1.7%.
In company news, EveryWare Global Inc. ( EVRY ) continued its recent rebound, with shares of the cash-strapped tablewear company rising more than 40% during Thursday trade after it yesterday secured a $20 million equity investment.
Monomoy Capital Partners on Tuesday agreed to provide the company with $20 million in new funding in exchange for an unspecified quantity of EVRY's Series A senior redeemable preferred stock with $21.2 million liquidation preference and seven-year warrants to buy 4.43 million shares of its common stock at a penny apiece.
The new money isn't coming cheap. In addition to the extra $1.2 million liquidation preference, the preferred stock also will pay 15% annual interest and will rank superior to any of the company's other debt, according to a regulatory filing today. EVRY can buy back the preferred stock at its option with 60 days notice by paying $22.26 million plus a 5% premium on any unpaid interest.
Separately, EVRY yesterday amended its existing term loan package to remove covenants requiring it to adhere with certain consolidated leverage and interest coverage ratios without triggering a default.
EVRY shares were up 44% at $2.72 apiece, earlier climbing to a session high of $3.19 a share. But even with today's gains, the stock has declined slightly more than 80% over the past 12 months after defaulting on a loan earlier this year and threatening a shutdown of its three manufacturing facilities.
In other sector news,
(+) LBY, Fiscal Q4 earnings rise over 400% to $0.42 per share. Excluding items, EPS climbs to $0.58 per share from $0.34 adjusted profit last year. Total revenue climbed 1% year over year to $221.9 million. No analyst estimates were available.
(-) HGG, Q1 net loss of $0.36 per share is $0.20 wider than consensus view. Revenue falls 10.0% year over year to $472.3 mln, trailing estimates by $16.76 mln. Does not expect increase from FY14 loss of $0.09 in FY15. Street expects $0.13 profit.
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