New Issue: Restoration Hardware (RH) $300 Million Convertible Senior Notes

Restoration Hardware's proposed deal looks good enough, or maybe even a bit better. We're particularly drawn to the relatively small deal size given the company's market capitalization. The $300 million deal, even with a shoe, will be only 10% of the equity. That's twice the new-issue cushion we look for. This name looks highly tradeable, with proven volatility in the 40% range and average daily volume of around $100 million. It may not be Tesla, but it'll more than do.

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