For further information:
The Right Start, Inc. Coffin Communications Group
5388 Sterling Center Drive 15300 Ventura Boulevard, Suite 303
Westlake Village, CA 91361 Sherman Oaks, CA 91403
(818) 707-7100 (818) 789-0100
Contact: Jerry Welch, CEO Contact: Crocker Coulson, Account
Raymond P. Springer, CFO Executive
For Immmediate release:
The Right Start Completes $7.4 Million Private Placement
WESTLAKE VILLAGE, Calif. (October 10, 2000) - The Right Start, Inc. (Nasdaq:
RTST), a leading retailer of unique, high-quality child development and
educational products for infants and children, announced today it has completed
a private placement of $3 million in convertible subordinated notes and $4.4
million of its Series D Convertible Preferred Stock. The proceeds from the sale
of the new securities will be used for new store growth and the reduction of
bank debt.
Under terms of the placement, the convertible subordinated notes mature in 2005,
bear annual interest of 8% and are convertible into common stock at a price of
$2.38 per share. The Series D Convertible Preferred Stock carries an 8% annual
dividend and is convertible at a price of $2.00 per share. Both securities
include a pay-in-kind feature that permits the company, at its option, to make
interest or dividend payments by issuance of additional securities rather than
cash.
Jerry R. Welch, chairman and chief executive officer of the company, said, "We
are pleased to have completed this private placement in a very tough capital
markets environment. After giving effect to the new financings, our capital
structure will be greatly improved with no debt outstanding under our $10
million bank revolving credit facility and only $1.5 million outstanding under
our $3 million bank capital expenditures line. With these new funds, we intend
to aggressively pursue new store development with a goal of increasing our store
base significantly over the next several years. Currently we have 11 new store
locations under development and we expect these to be opened by our fiscal year
end on Feb. 3, 2001."
About Right Start
The Right Start, Inc. is the largest, national specialty retailer of high
quality developmental, educational and care products for infants and children
through age 3. The Right Start brand originated in 1985 through the creation of
the award-winning Right Start Catalog(TM). The Right Start now operates 53
retail stores nationwide.
About RightStart.com
RightStart.com is a leading online specialty retailer for infants and children
through age 12 and has recently expanded to include a Maternity Store on its
site for expectant parents. RightStart.com is dedicated to providing customers
with a unique online shopping experience by offering an assortment of trusted
products carefully selected with regard to quality, developmental and
educational value along with rich product information and content from child
development professionals.
Committed to outstanding customer care, RightStart.com provides a number of
services aimed at bringing the specialty retail experience of The Right Start's
retail stores to its online customers. Services include free shipping and
handling on orders over $69, deluxe gift wrapping, guaranteed same-day shipping,
the ability to return items bought online to retail stores nationwide and live
online help.
The companies are based in Westlake Village, Calif.
This press release may contain certain forward-looking statements with respect
to the financial condition, results of operations and expansion projects of The
Right Start and RightStart.com that may be impacted by factors including, but
not limited to, the availability of capital, competition from other retailers
and potential product liability claims and RightStart.com's limited operating
history, negative cash flow, unpredictable operating results, dependence on
third party service providers and other risks included in The Right Start's
filings with the Securities and Exchange Commission including, but not limited
to, The Right Start's Registration Statement on Form S-3 (File No. 333-84319),
its Annual Report of Form 10-K/A for the fiscal year ended January 30, 1999 and
its quarterly reports.
