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04/14/2020

Dick’s Sporting Goods boosts liquidity

Marianne Wilson
Editor-in-Chief
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Dick's storefront

Dick's Sporting Goods Inc. has taken another move to bolster its liquidity as its stores remain closed.

The sporting goods giant is offering $500 million in convertible senior notes that mature in 2025. Dick’s said it intends to use a portion of  proceeds from the deal for general corporate purposes and it will enter hedging positions to avoid diluting its stock on conversion. 

Dick's, which has furloughed a "significant number" of employees who work at its stores, distribution centers and corporate headquarters amid the Covid-19 outbreak, has previously taken a number of actions to shore up liquidity during the Covid-19 crisis, including reducing capital executives, cutting salaries of senior executives and select other employees and suspending share repurchases.