UPDATE 1-American Eagle raises $149.6 mln from ARS liquidation

* Liquidated 95 percent of ARS investment portfolio * To
record 12 cents a share charge in Q3

Nov 4 (BestGrowthStock) – American Eagle Outfitters Inc (AEO.N: )
said it received proceeds of nearly $150 million through the
liquidation of nearly all its auction rate securities (ARS)
investment portfolio in its third-quarter.

The company, which liquidated 95 percent of its ARS
portfolio, said it will record a charge of 12 cents a share in
its third-quarter related to the ARS sale.

The market for ARS — debt securities on which interest
rates are set through auctions — collapsed early in 2008
when most holders were unable to dispose of their securities.

The liquidation allowed the company to convert
substantially all of its ARS investment portfolio to short-term
liquid assets, American Eagle said in a filing with the U.S.
Securities and Exchange Commission.

The company’s shares, which have gained over a quarter of
their value over the past three months, closed at $15.97
Thursday on the New York Stock Exchange.
(Reporting by Viraj Nair in Bangalore; Editing by Jarshad
Kakkrakandy)

UPDATE 1-American Eagle raises $149.6 mln from ARS liquidation