The shares repurchased by RH were bought at far lower levels and much of these purchases were conducted with cash (not just debt), such that even the comparable rise in enterprise value is also far much lower that this sharp rise in the share price.
Within just two days of that award (on May 4, 2017) RH quickly announced a 0 million share buyback to sharply reduce the share float.
And now suddenly these conversion prices are quite squarely within range.
But…you also know that in 20, RH had already purchased complete “bond hedges” from underwriter Bof A-ML to fully once those convertibles convert at prices over 6 and 8.
There is therefore no dilution until the share price exceeds well over 0.
In 20, RH paid Bof A-ML over 0 million for the long legs of these bond hedges to neutralize dilution.
In May of 2017, RH’s CEO Gary Friedman was quietly awarded a staggering nine figure incentive package if he can somehow engineer the share price to $150 or higher.