09:10 AM EDT, 04/01/2024 (MT Newswires) -- Guess? (GES) said Monday it plans to buy back shares worth $10.3 million under a newly approved stock buyback plan of up to $200 million.

The company also said it has engaged in a private agreement with a holder to issue around $12.1 million more of 3.75% convertible notes due 2028 in exchange for about $14.6 million of existing 2% convertible notes due 2024.

After the transaction, expected to settle around April 2, the 2028 notes will be added to the existing series totaling about $351.9 million outstanding and are expected to trade similarly, Guess? added.

Guess? said the new 2028 notes can be converted into cash, common stock, or a mix of both, with an initial conversion price of about $24.45 per share. Interest is set at 3.75% annually, payable semi-annually starting from Oct. 15, and maturing on April 15, 2028, the company added.

Guess? said it will buy back about 326,429 shares worth $10.3 million at $31.47 per share from the exchanging holder using the new buyback authorization.

This move is expected to offset potential dilution and manage cash flow, the company said. Additionally, Guess? said it amended its credit facility to accommodate these transactions.

Shares of the company were up 3.1% in recent Monday premarket activity.

Price: 32.43, Change: +0.96, Percent Change: +3.05