Wall Street Posts Solid Gains on Monday

Crocs rallies in premarket trading

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Dec 03, 2018
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U.S. stocks were in positive territory on Monday morning, with the Dow Jones advancing more than 200 points. The Dow Jones Industrial Average gained 1.02% to 25,799, the S&P 500 index rose 0.95% to 2,786 and the Nasdaq Composite Index advanced 1.29% to 7,424.

Shares of Crocs Inc. (CROX, Financial) gained more than 4% on Monday morning after the company announced an agreement with Blackstone Capital Partners to repurchase and convert the company’s Series A convertible preferred stock. This was part of a $200 million investment in Crocs in January 2014.

The investment had a cash dividend payable at 6% per annum and an allocation of earnings in any quarter in which the net income was positive. The shares were converted into 13.8 million shares of common stock at $14.50 per share.

Under the agreement, the company will buy back 6.9 million common shares for $183.7 million, or $26.64 a share. Blackstone will convert the other half of preferred shares into common shares, and has agreed not to sell or transfer the shares for about nine months.

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Global markets

The main European stock markets traded higher. The U.K.'s FTSE 100 rose 1.18%, France's CAC 40 gained 1%, Germany's Dax climbed 1.85% and Spain's IBEX 35 inched up 1.13%.

In Asia, Japan's Nikkei 225 jumped 1%, India’s BSE Sensex swelled 0.13%, Hong Kong's Hang Seng advanced 2.55% and China's Shanghai Composite rose 2.57%.

Disclosure: The author holds no positions in any stocks mentioned.