Filed Pursuant to Rule 424(b)(3)
Registration No. 333-62210
PROSPECTUS SUPPLEMENT
---------------------
(To Prospectus dated July 18, 2001)
BARNES & NOBLE, INC.
$300,000,000
5.25% Convertible Subordinated Notes Due 2009
9,227,363 Shares of Common Stock Issuable Upon Conversion of the Notes
-----------------------------------
This prospectus supplement relates to the resale of (i) up to
$300,000,000 aggregate principal amount of our 5.25% Convertible Subordinated
Notes Due 2009 and (ii) up to 9,227,363 shares of our common stock which are
initially issuable upon conversion of the notes by any holders thereof. The
notes and the underlying common stock may be offered from time to time for the
accounts of the selling securityholders named herein, in the prospectus dated
July 18, 2001, or in additional supplements to the prospectus. This prospectus
supplement reflects the purchase of notes by various selling securityholders
since the date of the prospectus.
The notes are convertible, in whole or in part, at the option of the
selling securityholder at any time prior to the close of business on the
business day immediately preceding March 15, 2009, unless previously redeemed or
repurchased, into shares of common stock, at a conversion price of $32.512 per
share (equivalent to a conversion rate of 30.7578 shares per $1,000 principal
amount of notes), subject to adjustment in certain circumstances. Our common
stock is traded on The New York Stock Exchange under the symbol "BKS." On
September 4, 2002, the last sale price for our common stock as reported on The
New York Stock Exchange was $22.64 per share.
We will not receive any of the proceeds from the sale of the notes or
the underlying common stock being offered by the selling securityholders. The
notes and the underlying common stock may be offered in negotiated transactions
or otherwise, at market prices prevailing at the time of sale or at negotiated
prices. In addition, the shares of common stock may be offered from time to time
through ordinary brokerage transactions on The New York Stock Exchange. See
"Plan of Distribution" in the prospectus. The selling securityholders and any
brokers, dealers or agents that participate with the selling securityholders in
the distribution of the notes or the underlying common stock may be deemed to be
"Underwriters" within the meaning of the Securities Act, in which case any
commissions received by such brokers-dealers, agents or underwriters and any
profit on the resale of the notes or the underlying common stock purchased by
them may be deemed to be underwriting commissions or discounts under the
Securities Act.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS SUPPLEMENT IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
THE DATE OF THIS PROSPECTUS SUPPLEMENT IS SEPTEMBER 9, 2002.
SELLING SECURITYHOLDERS
The following table, which sets forth certain information regarding the
beneficial ownership of notes by the selling securityholders and the number of
shares of common stock issuable upon conversion of the notes as of September 4,
2002, has been updated from the table contained in the prospectus to include
certain additional selling securityholders.
Any or all of the notes or underlying common stock listed below may be
offered for sale pursuant to this prospectus supplement by the selling
securityholders from time to time. Accordingly, no estimate can be given as to
the amount of the notes or underlying common stock that will be held by the
selling securityholders upon consummation of any such sales. In addition, the
selling securityholders identified below may have sold, transferred or otherwise
disposed of all or a portion of their notes since the date on which the
information regarding their notes was provided, in transactions exempt from the
registration requirements of the Securities Act. The table has been prepared
based on information furnished to us by or on behalf of the selling
securityholders.
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
1976 Distribution $9,000 * 276 0 *
Trust FBO A.R.
Lauder/Zinterhofer
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
1976 Distribution $18,000 * 553 0 *
Trust FBO Jane
A. Lauder
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
2000 Revocable Trust FBO A.R. $9,000 * 276 0 *
Lauder/Zinterhofer
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
AAM/Zazove Institutional $1,200,000 * 36,909 0 *
Income Fund L.P.
940 Southwood Blvd., #200
Incline Village, NV 89451
-2-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
ACM Offshore Fund $3,150,000 1.0% 96,887 0 *
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
AIG/National Union Fire $925,000 * 28,451 0 *
Insurance
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
Alexandra Global $9,000,000 3.0% 276,820 0 *
Investment Fund 1 Ltd.
c/o 237 Park Avenue, 9th Floor
New York, New York 10017
Allete, Inc. $250,000 * 7,689 0 *
30 W. Superior Street
Duluth, MN 55802
Aloha Airlines Non-Pilots $100,000 * 3,075 0 *
Pension Trust
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd., Suite 900
Los Angeles, CA 90024
Aloha Pilots Retirement $50,000 * 1,537 0 *
Trust
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
Alpine Associates $5,450,000 1.8% 167,630 0 *
c/o V.E.Z. Systems
120 Broadway, 9th Floor
Rm 913
New York, NY 10271
Alpine Partners, L.P. $850,000 * 26,144 0 *
c/o V.E.Z. Systems
120 Broadway, 9th Floor
Rm 913
New York, NY 10271
-3-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
American Motorist Insurance $655,000 * 20,146 0 *
Company
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
American Samoa Government $40,000 * 1,230 0 *
c/o SSI Investment Management
357 North Canon Drive
Beverly Hills, CA 90210
Arapahoe County Colorado $63,000 * 1,937 0 *
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
Arbitex Master Fund L.P. $4,000,000 1.3% 123,031 0 *
c/o HW Capital L.P.
1601 Elm Street, Suite 4000
Dallas, TX 75201
Arkansas PERS $1,350,000 * 41,523 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
Associated Electric & Gas $800,000 * 24,606 0 *
Insurance Services Limited
c/o Calamos Asset
Management, Inc.
1111 Warrenville Road
Naperville, Illinois 60563-1493
Bear, Stearns & Co. Inc. $8,100,000 2.7% 249,138 0 *
245 Park Avenue, 13th Floor
Global Fund Management
New York, NY 10167
BMO Nesbitt Burns $1,000,000 * 30,757 0 *
1 First Canadian Place
3rd Floor Podium
Toronto, Ontario
Canada M5X 1H3
-4-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
BNP Paribas Equity $13,293,000 4.4% 408,864 32,826 *
Strategies, SNC
555 Croton Road, 4th Floor
King of Prussia, PA 19406
Boilermakers Blacksmith $1,850,000 * 56,902 0 *
Pension Trust
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
BP Amoco Corporation $3,950,000 1.3% 121,493 0 *
Master Trust for Employee
Pension Plans
c/o Noddings Investments
700 Market Street
St. Louis, MO 63101
BP Amoco PLC. Master Trust $1,193,000 * 36,694 0 *
c/o SSI Investment Management
357 North Canon Drive
Beverly Hills, CA 90210
British Virgin Island $48,000 * 1,476 0 *
Social Security Board
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
C&H Sugar Company $150,000 * 4,613 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
Calamos Convertible Fund- $2,800,000 * 86,122 0 *
Calamos Investment Trust
c/o Calamos Asset Management,
Inc.
1111 Warrenville Road
Naperville, Illinois 60563-1493
-5-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Calamos Convertible Growth $2,200,000 * 67,667 0 *
and Income Fund-Calamos
Investment Trust
c/o Calamos Asset Management,
Inc.
1111 Warrenville Road
Naperville, Illinois 60563-1493
Calamos Convertible $125,000 * 3,844 0 *
Portfolio-Calamos Advisors
Trust
c/o Calamos Asset Management,
Inc.
1111 Warrenville Road
Naperville, Illinois 60563-1493
Calamos Market Neutral $3,000,000 1.0% 92,273 0 *
Fund-Calamos Investment
Trust
c/o Calamos Asset Management, Inc.
1111 Warrenville Road
Naperville, Illinois 60563-1493
California Public $3,000,000 1.0% 92,723 281,300 *
Employees' Retirement
System
400 P Street, Suite 3492
Sacramento, CA 95814
Cheyne Capital Management $5,275,000 * 162,247 0 *
Limited
13 Park Place
St. James, London SWIA1LP
CIBC WM (International) $6,000,000 2.0% 184,547 0 *
Arbitrage
425 Lexington Avenue,
5th Floor
New York, NY 10128
CitiSam Fund Ltd. $4,000,000 1.3% 123,031 0 *
555 California St.,
Suite 2975
San Francisco, CA 94104
City of New Orleans $264,000 * 8,120 0 *
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
-6-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Clarica Life Insurance $510,000 * 15,686 0 *
Co.-U.S.
c/o Calamos Asset Management,
Inc.
1111 Warrenville Road
Naperville, Illinois 60563-1493
Consulting Group Capital $480,000 * 14,763 0 *
Market Funds
c/o Calamos Asset Management,
Inc.
1111 Warrenville Road
Naperville, Illinois 60563-1493
Continental Assurance $2,450,000 * 75,356 0 *
Company on Behalf of
its Separate Account (E)
CNA Plaza
23 South
Chicago, IL 60685
Convertible Securities $205,000 * 6,305 0 *
Fund
c/o Banc of America
Capital Management, LLC
601 W. Riverside Avenue,
Suite 420
Spokane, WA 99201-0620
Cooper Neff Convertible $1,890,000 * 58,132 0 *
Strategies Fund LP
c/o BNP Paribas Brokerage
Services, Inc.
555 Croton Road, 4th Floor
King of Prussia, PA 19406
Credit Suisse First $20,307,000 6.7% 624,600 0 *
Boston Corporation
11 Madison Avenue, 7th Floor
New York, NY 100101
Attn: Reorg. Dept.
DeAm Convertible Arbitrage $1,500,000 * 46,136 0 *
Fund
c/o Palladin Group
195 Maplewood Avenue
Maplewood, NJ 07040
-7-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Delaware PERS $2,000,000 * 61,515 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
Deutsche Banc Alex Brown $7,100,000 2.3% 218,380 1,275,324 2.2%
1251 Avenue of the Americas
New York, NY 10020
Delta Pilots Disability $500,000 * 15,378 0 *
and Survivorship Trust
c/o Calamos Asset Management,
Inc.
1111 Warrenville Road
Naperville, Illinois 60563-1493
Drury University $50,000 * 1,537 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd., Suite 900
Los Angeles, CA 90024
Drury University $50,000 * 1,537 0 *
c/o Calamos Asset Management,
Inc.
1111 Warrenville Road
Naperville, Illinois 60563-1493
F.R. Convt. Sec. Fn. $275,000 * 8,458 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
First Union Securities, $6,550,000 2.2% 201,464 0 *
Inc.
8739 Research Drive
Charlotte, NC 28262-0675
Grace Brothers, Ltd. $750,000 * 23,068 12,900 *
1560 Sherman Ave., Ste. 900
Evanston, IL 60201
-8-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Hawaiian Airlines $50,000 * 1,537 0 *
Employees Pension
Plan-IAM
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
Hawaiian Airlines Pension $10,000 * 307 0 *
Plan for Salaried Employees
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
Hawaiian Airlines Pilots $90,000 * 2,768 0 *
Retirement Plan
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
HFR Convertible Arbitrage $250,000 * 7,689 0 *
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
HFR Master Fund Ltd. $400,000 * 12,303 0 *
940 Southwood Blvd., #200
Incline Village, NV 89451
HFR Master Fund, Ltd. $200,000 * 6,151 0 *
10 South Riverside Drive,
Suite 1450
Chicago, Illinois 60606
Highbridge International $21,000,000 7.0% 645,915 0 *
LLC
P.O. Box 30554 SmB
Grand Cayman Islands
BWI
-9-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Hotel Union & Hotel $430,000 * 13,225 0 *
Industry of Hawaii
c/o SSI Investment
Management
357 North Canon Drive
Beverly Hills, CA 90210
ICI American Holdings $1,075,000 * 33,064 0 *
Trust
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd., Suite 900
Los Angeles, CA 90024
Independence Blue Cross $137,000 * 4,213 0 *
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
Innovest $370,000 * 11,380 0 *
Finanzdienstleistungs AG
c/o Nicholas Applegate Capital
Management
600 West Broadway
San Diego, CA 92101
International Monetary $900,000 * 27,682 0 *
Fund Convertible Fund
555 California Street,
Suite 2975
San Francisco, CA 94104
Investcorp-SAM Fund Ltd. $4,000,000 1.3% 123,031 0 *
555 California St.,
Suite 2975
San Francisco, CA 94104
Island Holdings $50,000 * 1,537 0 *
c/o Froley Revy
Investment Company,
Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
James Campbell Corporation $139,000 * 4,275 0 *
c/o SSI Investment Management
357 North Canon Drive
Beverly Hills, CA 90210
-10-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Jefferies & Company Inc. $9,000 * 276 0 *
c/o SSI Investment Management
357 North Canon Drive
Beverly Hills, CA 90210
Jeffries & Company Inc. $1,060,000 * 32,603 0 *
Harborside Financial Center
Suite 705, Plaza III
Jersey City, NJ 07303
Jersey (IMA) Ltd. $2,600,000 * 79,970 0 *
c/o Libertyview Capital Mgmt.
101 Hudson Street, Suite 3700
Jersey City, NJ 07302
KBC Financial Products $500,000 * 15,378 0 *
USA
145 East 45th Street
2 Grand Central Tower
New York, NY 10017
KD Offshore Fund CV $1,250,000 * 38,447 0 *
c/o Kellner, DiLeo & Co.
900 Third Avenue, Suite 1000
New York, NY 10022
Kellner, DiLeo & Co. $1,250,000 * 38,447 0 *
900 Third Avenue, Suite 1000
New York, NY 10022
Lakeshore International $3,000,000 1.0% 92,273 0 *
Ltd.
601 Carlson Parkway, Suite 200
Minnetonka, MN 55305
Lancer Securities Cayman $500,000 * 15,378 0 *
c/o Palladin Group
195 Maplewood Avenue
Maplewood, NJ 07040
Lexington Vantage Fund, Ltd. $200,000 * 6,151 0 *
c/o TQA Investors, LLC
405 Lexington Avenue,
45th Floor
New York, NY 10174
-11-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
LDG Limited $300,000 * 9,227 0 *
48 Par-La-Ville Road,
Suite 780
Hamilton, Bermuda HM 11
Libertyview Fund LLC $300,000 * 9,227 0 *
c/o Libertyview Capital Mgmt.
101 Hudson Street, Suite 3700
Jersey City, NJ 07302
Libertyview Funds L.P. $2,100,000 * 64,591 0 *
c/o Libertyview Capital Mgmt.
101 Hudson Street, Suite 3700
Jersey City, NJ 07302
Lincoln National $2,000,000 * 61,515 0 *
Convertible Securities Fund
c/o Delaware Investments
1818 Market Street,
13th Floor Mailcode 85
Philadelphia, PA 19103-3682
Lipper Convertibles $2,000,000 * 61,515 0 *
Series II, L.P.
101 Park Avenue, 6th Floor
New York, NY 10178
Lipper Convertibles, L.P. $21,162,000 7.0% 650,898 0 *
101 Park Avenue, 6th Floor
New York, NY 10178
Lipper Offshore $5,080,000 1.6% 156,250 0 *
Convertibles, L.P.
101 Park Avenue, 6th Floor
New York, NY 10178
Lipper Offshore $838,000 * 25,775 0 *
Convertibles, L.P. #2
101 Park Avenue, 6th Floor
New York, NY 10178
Local Initiatives $75,000 * 2,306 0 *
Support Corporation
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
-12-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Man Convertible 900,000 * 27,682 0 *
Bond Master
Fund, Ltd.
101 Glacier Point Road,
Suite D
San Rafael, CA 94901
McMahan Securities $8,000,000 2.7% 246,062 0 *
Co., L.P.
500 West Putnam Avenue,
3rd Floor
Greenwich, CT 06830-6086
Merril Lynch $341,000 * 10,488 0 *
Insurance Group
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
Morgan Stanley & Co. $2,870,000 * 88,275 0 *
1585 Broadway
New York, NY 10036
Municipal Employees $138,000 * 4,244 0 *
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
Nabisco Holdings $42,000 * 1,291 0 *
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
Nations Convertible $5,295,000 1.7% 162,862 0 *
Securities Fund
c/o Bank of America Capital
Management, LLC
601 W. Riverside Avenue,
Suite 420
Spokane, WA 99201-0621
New Orleans Firefighters $144,000 * 4,429 0 *
Pension/Relief Fund
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
-13-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
New York Life Insurance $1,200,000 * 36,909 0 *
and Annuity Corporation
51 Madison Avenue
New York, NY 10010
New York Life Insurance $11,000,000 3.7% 338,336 0 *
Company
51 Madison Avenue
New York, NY 10010
Northern Income Equity $3,000,000 1.0% 92,273 0 *
Fund
50 S. Lasalle Street
Chicago, IL 60675
Occidental Petroleum $263,000 * 8,089 0 *
Corporation
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
Ohio Bureau of Workers $178,000 * 5,474 0 *
Compensation
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
Ondeo Nalco $300,000 * 9,227 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd., Suite 900
Los Angeles, CA 90024
Onex Industrial Partners $4,710,000 1.5% 144,869 0 *
Limited
c/o Silvercreek Management Inc.
1670 Bayview Avenue, Suite 308
Toronto, Ontario, Canada M4G 3C2
OZ Master Fund, Ltd. $10,000,000 3.3% 307,578 0 *
c/o OZ Management, LLC
9 West 57th Street,
39th Floor
New York, NY 10019
-14-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Palladin Securities LLC $1,000,000 * 30,757 0 *
c/o Palladin Group
195 Maplewood Avenue
Maplewood, NJ 07040
Pebble Capital Limited $2,420,000 * 74,434 0 *
c/o Silvercreek Management
Inc.
1670 Bayview Avenue,
Suite 308
Toronto, Ontario,
Canada M4G 3C2
Policemen and Firemen $691,000 * 21,253 0 *
Retirement System of the
City of Detroit
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
ProMutual $781,000 * 24,021 0 *
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
Queen's Health Plan $35,000 * 1,076 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
Raytheon Master Pension $704,000 * 21,653 0 *
Trust
c/o Advent Capital
Management
30 Broad Street, 30th Floor
New York, NY 10004
Rhapsody Fund, LP $5,200,000 1.7% 159,940 0 *
555 California Street,
Suite 2975
San Francisco, CA 94104
RJR Reynolds $123,000 * 3,783 0 *
c/o Advent Capital
Management
30 Broad Street, 30th Floor
New York, NY 10004
-15-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Robertson Stephens $6,000,000 2.0% 184,547 0 *
555 California Street,
Suite 2600
San Francisco, CA 94110
Sagamore Hill Hub Fund $6,000,000 2.0% 184,547 0 *
Ltd.
c/o Sagamore Hill Capital Mgmt
2 Greenwich Office Park
Greenwich, CT 06831
San Diego County Employees $2,100,000 * 64,591 0 *
Retirement Association
940 Southwood Blvd., #200
Incline Village, NV 89451
Shell Pension Trust $558,000 * 17,162 0 *
c/o Advent Capital
Management
30 Broad Street, 30th Floor
New York, NY 10004
Showel Capital L.P. $300,000 * 9,227 0 *
440 South LaSalle Street
Suite 1021
Chicago, IL 60605
Silvercreek II Limited $5,970,000 1.9% 183,624 0 *
c/o Silvercreek Management Inc.
1670 Bayview Avenue, Suite 308
Toronto, Ontario, Canada M4G 3C2
Silvercreek Limited $1,900,000 * 58,439 0 *
Partnership
c/o Silvercreek Management Inc.
1670 Bayview Avenue, Suite 308
Toronto, Ontario, Canada M4G 3C2
Spear, Leeds & Kellogg LP $1,000,000 * 30,757 0 *
120 Broadway, 7th Floor
New York, NY 10271
St. Thomas Trading, Ltd. $1,476,000 * 45,398 0 *
101 Glacier Point Road,
Suite D
San Rafael, CA 94901
-16-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Starvest Combined $1,000,000 * 30,757 0 *
Portfolio
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd., Suite 900
Los Angeles, CA 90024
State of Maryland $3,335,000 1.1% 102,577 0 *
Retirement System
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
State of Oregon/Equity $6,500,000 2.2% 199,926 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd., Suite 900
Los Angeles, CA 90024
State of Oregon/SAIF $3,875,000 1.3% 119,186 0 *
Corporation
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd.,
Suite 900
Los Angeles, CA 90024
Sterling Invest Co. $500,000 * 15,378 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd., Suite 900
Los Angeles, CA 90024
Sturgeon Limited $331,000 * 10,180 0 *
48 Par-La-Ville Road
Suite 228
Hamilton, Bermuda HM 11
Syngenta AG $400,000 * 12,303 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd., Suite 900
Los Angeles, CA 90024
-17-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
The City University of $159,000 * 4,890 0 *
New York
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
The Class I C Company $1,440,000 * 44,291 0 *
c/o PRS International
801 Brickell Avenue
Miami, Florida 33121
The Estate of James $183,000 * 5,628 0 *
Campbell
c/o SSI Investment Management
357 North Canon Drive
Beverly Hills, CA 90210
The Grable Foundation $124,000 * 3,813 0 *
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
The Grady Hospital $138,000 * 4,244 0 *
Foundation
c/o Advent Capital Management
30 Broad Street, 30th Floor
New York, NY 10004
TQA Master Fund Ltd $8,400,000 2.8% 258,366 0 *
405 Lexington Avenue,
45th Floor
New York, NY 10174
TQA Master Plus Fund Ltd $1,200,000 * 36,909 0 *
405 Lexington Avenue,
45th Floor
New York, NY 10174
UBS O'Connor LLC FBO $1,000,000 * 30,757 0 *
UBS Global Equity
Arbitrage Master Ltd.
141 West Jackson Boulevard
7th Floor
Chicago, IL 60640
-18-
Percent
Number of
of Shares Common
Percent- Number of of Common Stock
Prin- age of Shares Stock Owned
cipal Notes into which Owned After
Amount of Out- the Notes Before the
of standing are Con- the Offering
Name Notes(1) (1) vertible(2) Offering(3) (4)
---- ------- -------- ----------- ---------- --------
Van Kampen Harbor Fund $4,500,000 1.5% 138,410 0 *
State Street Bank &
Trust Co.
c/o Van Kampen Asset
Management Inc.
2800 Post Oak Blvd.
Houston, TX 77056
Viacom Inc. Pension Plan $46,000 * 1,414 0 *
Master Trust
c/o SSI Investment Management
357 North Canon Drive
Beverly Hills, CA 90210
White River Securities $6,300,000 2.1% 193,774 0 *
L.L.C.
c/o Global Fund Management
245 Park Avenue, 13th Floor
New York, NY 10167
Zazove Hedged Convertible $1,100,000 * 33,833 0 *
Fund, LP
940 Southwood Blvd., #200
Incline Village, NV 89451
Zeneca Holdings Trust $500,000 * 15,378 0 *
c/o Froley Revy Investment
Company, Inc.
10900 Wilshire Blvd., Suite 900
Los Angeles, CA 90024
Zurich Institutional $200,000 * 6,151 0 *
Benchmark Master Fund Ltd.
c/o Olympic Capital
(Bermuda) Ltd.
Williams House - 20 Reid Street
Hamilton , Bermuda HM 11
Zurich Institutional $1,200,000 * 36,909 0 *
Benchmarks Master Fund Ltd.
940 Southwood Blvd., #200
Incline Village, NV 89451
Unknown (5)
-----------------
* Less than 1%.
-19-
(1) The information set forth herein is as of September 9, 2002 and is based
upon $300.0 million aggregate principal amount of notes outstanding.
(2) Assumes conversion of the full amount of notes held by such selling
securityholder at the initial conversion price of $32.512 per share of
Barnes & Noble common stock; such conversion price is subject to adjustment
as described under "Description of Notes -- Conversion of Notes."
Accordingly, the number of shares of common stock issuable upon conversion
of the notes may increase or decrease from time to time. Fractional shares
will not be issued upon conversion of the notes; cash will be paid in lieu
of fractional shares, if any.
(3) Does not include shares issuable upon conversion of the notes.
(4) Calculated based on Rule 13d-3(d)(i) of the Exchange Act using 67,461,308
shares of common stock of Barnes & Noble outstanding as of September 4,
2002. Assumes the number of shares of common stock issuable upon conversion
of all of a particular holder's notes are outstanding. However, this does
not include the conversion of any other holder's notes.
(5) Information about other selling securityholders will be set forth in
prospectus supplements, if requested.
We prepared this table based on the information supplied to us by the
selling securityholders named in the table.
Other than their ownership of our securities, none of the selling
securityholders has had any material relationship with us within the past three
years, other than Credit Suisse First Boston Corporation, which has acted as one
of our initial purchasers and/or underwriters. The selling securityholders
purchased all of the notes in a private transaction. All of the notes and the
shares of common stock into which the notes are convertible are "restricted
securities" under the Securities Act.