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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): MARCH 10, 1998
BEST BUY CO., INC.
(Exact name of registrant as specified in charter)
MINNESOTA 1-9595 41-0907483
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification No.)
incorporation)
7075 FLYING CLOUD DRIVE, EDEN PRAIRIE, MINNESOTA 55344
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 612\947-2000
NO CHANGE
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
On March 10, 1998, Best Buy Co., Inc. (Best Buy), on behalf of Best Buy
Capital, L.P., a Delaware limited partnership of which Best Buy is the General
Partner (Capital), announced that Capital has elected to exercise its right to
cause the conversion rights of the holders of Capital's 61/2% Convertible
Monthly Income Preferred Securities (Preferred Securities), to expire effective
as of the close of business on Friday, April 24, 1998, the Conversion Expiration
Date. The Preferred Securities are convertible at the option of the holder at
any time prior to the Conversion Expiration Date into shares of Best Buy common
stock at the conversion rate of 1.111 shares of Best Buy common stock for each
Preferred Security. Based on a liquidation preference of $50 per Preferred
Security, the conversion rate is equivalent to a conversion price of $45.00 per
share of Best Buy common stock. As of the close of business on Monday, March 9,
1998, the market price of the Best Buy common stock was $66.75.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) EXHIBITS
99 Press Release issued March 10, 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: March 10, 1998 By: /s/Elliot S. Kaplan
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Elliot S. Kaplan, Secretary
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EXHIBIT 99
PRESS RELEASE
BEST BUY ANNOUNCES
EXPIRATION OF CONVERSION RIGHTS
OF PREFERRED SECURITIES
MINNEAPOLIS, MARCH 10, 1998 -- Best Buy Co., Inc., on behalf of Best Buy
Capital, L.P. (Partnership), a Delaware limited partnership of which Best Buy
Co., Inc. is the General Partner, announced today that the Partnership has
elected to exercise its right to cause the conversion rights of the holders of
the Partnership's 6.5% Convertible Monthly Income Preferred Securities
(Preferred Securities) to expire effective as of the close of business on
Friday, April 24, 1998, the Conversion Expiration Date. The Preferred Securities
are convertible at the option of the holder at any time on or prior to the
Conversion Expiration Date into shares of Best Buy common stock at the
conversion rate of 1.111 shares of Best Buy common stock for each Preferred
Security. Based on a liquidation preference of $50 per Preferred Security, the
conversion rate is equivalent to a conversion price of $45 per share of Best Buy
common stock. As of the close of business on Monday, March 9, 1998, the market
price of the Best Buy common stock was $66.75.
Any Preferred Securities which are not surrendered for conversion on or prior
to the Conversion Expiration Date (April 24, 1998) will no longer be
convertible into shares of Best Buy common stock. After April, 24, 1998, any
outstanding Preferred Securities will continue to be entitled to receive
cumulative, declared cash distributions from the Partnership at an annual
rate of 6.5% of the liquidation preference of $50 per Preferred Security
($3.25 annually), payable monthly in arrears on the last day of each calendar
month. The market price of the Preferred Securities as of the close of
business on Monday, March 9, 1998 was $73.375 per Preferred Security. In the
event that less than 5% of the original amount of the Preferred Securities
issued remain outstanding after the Conversion Expiration Date, the
Partnership will have the right to redeem the Preferred Securities, for cash,
at a price of $50 per Preferred Security. If the Preferred Securities are not
redeemed, they will mature on November 3, 2024 at their $50 liquidation
preference.
Best Buy Co., Inc. is a Fortune 200 company operating 285 stores in 32 states.
The Company retails name brand personal computers and home office products,
consumer electronics, entertainment software and appliances. Best Buy's common
stock is traded on the New York Stock Exchange, symbol BBY. The Preferred
Securities are also traded on the New York Stock Exchange, symbol BBY PFM.
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For more information:
Susan Hoff
VP Corporate Communications & Investor Relations
(612) 947-2443
[email protected]
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