Marcus to repurchase $40M of 5% convertible notes due 2025 for ~$47M cash; expects $6.4M from capped call unwind

MARCUS CORP

Entered purchase agreements with holders to exchange $40.0M aggregate principal of 5.00% Convertible Senior Notes due 2025 for cash, expected to close June 14, 2024.
Aggregate cash repurchase price estimated at ~$47.0M (or ~$40.6M net of ~$6.4M from capped call unwind), based on a VWAP of $11.17.
Company also entered unwind agreements to terminate a portion of Existing Capped Call Transactions, receiving ~$6.4M in cash for settlement.
Holders may engage in open-market hedging activities that could affect trading prices of common stock and the Notes.
Purchase price is subject to adjustment based on VWAP of MCS common stock during the measurement period.

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