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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 17, 1998
BEST BUY CO., INC.
(Exact name of registrant as specified in its charter)
MINNESOTA
(State or other jurisdiction of incorporation)
1-9595 41-0907483
(Commission File Number) (IRS Employer Identification Number)
7075 Flying Cloud Drive 55344
Eden Prairie, Minnesota (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: 612/947-2000
Not applicable
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On August 17, 1998, Best Buy Co., Inc. announced the authorized early redemption
of the Company's $150 million 8 5/8% Senior Subordinated Notes due 2000 by Best
Buy's Board of Directors.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
The following is filed as an Exhibit to this Report.
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EXHIBIT NO. DESCRIPTION OF EXHIBIT
99 Press Release issued August 17, 1998
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BEST BUY CO., INC.
(Registrant)
Date: August 17, 1998 By: /s/ Allen U. Lenzmeier
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Name: Allen U. Lenzmeier
Title: Executive Vice President &
Chief Financial Officer
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EXHIBIT 99
PRESS RELEASE
BEST BUY ANNOUNCES
EARLY REDEMPTION OF
SENIOR SUBORDINATED NOTES
MINNEAPOLIS, AUGUST 17, 1998 - Best Buy Co., Inc. (NYSE: BBY) announced the
authorized early redemption of the Company's $150 million 8 5/8% Senior
Subordinated Notes Due 2000 by Best Buy's Board of Directors. The Notes are
redeemable at 102.5% of par after October 1, 1998. The Company expects to redeem
all of the Notes on October 5, 1998. The premium on the early redemption will
reduce earnings per share by two cents in the Company's fiscal third quarter,
however, it is expected to generate net interest savings of nearly $10 million
over the original remaining two years of the Notes. This redemption, combined
with the conversion of the Company's Preferred Securities into common stock in
April 1998, results in the early retirement of $380 million in long-term debt in
the past six months.
Chairman, Founder and CEO Richard M. Schulze stated, "We're extremely pleased
that our financial position allows us to repay this financing two years early.
We expect our anticipated earnings and continued improvement in inventory
management will fund our working capital requirements and previously announced
expansion plans for the current and subsequent fiscal year."
This release contains forward looking statements, which are subject to risks and
uncertainties. The Company's SEC filings contain additional discussion about
those factors which could cause actual results to differ from management's
expectations.
Minneapolis-based Best Buy Co., Inc. is the nation's largest volume specialty
retailer of name-brand consumer electronics, personal computers, entertainment
software and appliances. The Company is ranked 199 on the Fortune 500. Best Buy
operates 289 stores in 32 states. For more information, access the Company's Web
site at WWW.BESTBUY.COM.
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For more information:
Susan Hoff
VP Corporate Communications & Investor Relations
(612) 947-2443
[email protected]
