Foothill Ranch-based Wet Seal Inc. said Tuesday that it’s wrapped up a $56 million financing.
The struggling teen retailer sold $56 million of convertible bonds that mature in 2012 and have a conversion price of $1.50. Shares of Wet Seal were trading at $1.75 midday Tuesday.
The company also said it issued a series of warrants that allow investors to buy up to 12.6 million shares of company stock at $2.25 to $2.75 a share.
Meanwhile, Wet Seal said it signed a deal to extend a $10 million bridge loan with S.A.C. Capital Associates LLC and other investors.
The loan was set to expire Feb. 28. It can now be renewed month-to-month.
Wet Seal said the bridge loan extension would allow it to have additional capital available after the closing of its convertible financing.
The company’s financial restructuring is part of a bid to stave off bankruptcy.
Wet Seal is in the process of shuttering 150 stores by the end of February. The company operates 463 Wet Seal stores and 96 Arden B. stores.
It has about 5,000 workers, but said 2,000 employees would be cut in the store liquidations.
