ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
OnAugust 29, 2022 ,DICK'S Sporting Goods, Inc. (the "Company") entered into partial unwind agreements with a financial institution (the "Hedge Counterparty") relating to a portion of the convertible note hedge transactions (the "Note Hedge Partial Early Termination Agreement") and a portion of the warrant transactions (the "Warrant Partial Early Termination Agreement") that were previously entered into by the Company with the Hedge Counterparty in connection with the issuance of its 3.25% Convertible Senior Notes due 2025 (the "2025 Notes"). The Note Hedge Partial Early Termination Agreement relates to a number of call options corresponding to a portion of the number of 2025 Notes subject to exchange pursuant to the Exchange Agreements described below (the "Exchanged Notes"), and the Warrant Partial Early Termination Agreement relates to a portion of the number of warrants corresponding to the number of shares of the Company's common stock underlying such Exchanged Notes. Pursuant to the Note Hedge Partial Early Termination Agreement and the Warrant Partial Early Termination Agreement (together, the "Partial Early Termination Agreements"), the Hedge Counterparty will deliver to the Company a number of shares of the Company's common stock in respect of the call option transactions and warrant transactions being early terminated thereunder, which number of shares will be determined based upon the volume-weighted average price per share of the Company's common stock during an averaging period, commencing onAugust 30, 2022 . The foregoing description of the Partial Early Termination Agreements does not purport to be complete and is qualified in its entirety by reference to the full text of the form of Note Hedge Partial Early Termination Agreement and the form of Warrant Partial Early Termination Agreement, copies of which are filed with this Current Report on Form 8-K as Exhibits 10.1 and 10.2, respectively, and are incorporated herein by reference.HudsonWest LLC , a full-service independent equity derivatives and convertible securities advisory firm, acted as financial advisor to the Company on the call spread terminations and the exchange transactions described below.
ITEM 3.02. UNREGISTERED SALE OF EQUITY SECURITIES
OnAugust 29, 2022 , the Company entered into exchange agreements (the "Exchange Agreements" and each, an "Exchange Agreement") with certain holders (the "Noteholders") of the 2025 Notes. The Noteholders have agreed to exchange$100 million in aggregate principal amount of the Company's outstanding 2025 Notes for a combination of cash and shares of the Company's common stock. The total number of shares of common stock to be issued by the Company to the Noteholders will be determined based upon the volume-weighted average price per share of the Company's common stock during an averaging period, commencing onAugust 30, 2022 . The Company's shares of common stock to be issued in connection with the exchange will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), and will be issued in reliance on the exemption from the registration requirements thereof provided by Section 4(a)(2) of the Securities Act in a transaction by an issuer not involving a public offering.
The 2025 Notes to be exchanged represent approximately 26.67% of the outstanding
principal amount. Following the exchange, approximately
The foregoing description of the Exchange Agreements does not purport to be complete and is qualified in its entirety by reference to the full text of the form of Exchange Agreements, a copy of which is filed with this Current Report on Form 8-K as Exhibit 10.3 and is incorporated herein by reference. --------------------------------------------------------------------------------
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits. Exhibit No. Description 10.1 Form of Note Hedge Partial Early Termination Agreement, dated as ofAugust 29 , 2022, by and between DICK'S
Sporting Goods, Inc. and the
applicable call option counterparty. 10.2 Form of Warrant Partial Early Termination
Agreement, dated as of
August 29 , 2022, by and between DICK'S
Sporting Goods, Inc. and the
applicable warrant counterparty. 10.3 Form of Exchange Agreement, dated as of
betweenDICK'S Sporting Goods, Inc. and the applicable Noteholder. Exhibit 104 Cover Page Interative Data File (embedded within the Inline XBRL document)
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