424B3 1 june424b3.txt \B&N\JUNE 424B3 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 June 11, 2002, the last sale price for our common stock as reported on The New York Stock Exchange was $30.11 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 JUNE 18, 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 June 11, 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. Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (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 Trust $18,000 * 553 0 * FBO Jane A. Lauder c/o Advent Capital Management 30 Broad Street, 30th Floor New York, NY 10004 2000 Revocable Trust $9,000 * 276 0 * FBO A.R. Lauder/ Zinterhofer c/o Advent Capital Management 30 Broad Street, 30th Floor New York, NY 10004 AAM/Zazove $1,200,000 * 36,909 0 * Institutional Income Rund L.P. 940 Southwood Blvd., #200 Incline Village, NV 89451 -2- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (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 $925,000 * 28,451 0 * Fire 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 $100,000 * 3,075 0 * Non-Pilots 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- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- American Motorist $655,000 * 20,146 0 * Insurance Company c/o Advent Capital Management 30 Broad Street, 30th Floor New York, NY 10004 American Samoa $40,000 * 1,230 0 * Government 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 $4,000,000 1.3% 123,031 0 * L.P. 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 $800,000 * 24,606 0 * & Gas Insurance Services Limited c/o Calamos Asset Management, Inc. 1111 Warrenville Road Naperville, Illinois 60563-1493 Bear, Stearns & Co. $8,100,000 2.7% 249,138 0 * Inc. 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- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (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 $1,850,000 * 56,902 0 * Blacksmith 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 $1,193,000 * 36,694 0 * Trust 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 $2,800,000 * 86,122 0 * Fund-Calamos Investment Trust c/o Calamos Asset Management, Inc. 1111 Warrenville Road Naperville, Illinois 60563-1493 -5- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- Calamos Convertible $2,200,000 * 67,667 0 * Growth 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 $3,000,000 1.0% 92,273 0 * Neutral 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' Retire- ment System 400 P Street, Suite 3492 Sacramento, CA 95814 Cheyne Capital $5,275,000 * 162,247 0 * Management Limited 13 Park Place St.James, London SWIA1LP CIBC WM (Inter- $6,000,000 2.0% 184,547 0 * national) 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- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- Clarica Life $510,000 * 15,686 0 * Insurance Co.-U.S. c/o Calamos Asset Management, Inc. 1111 Warrenville Road Naperville, Illinois 60563-1493 Consulting Group $480,000 * 14,763 0 * Capital 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 Conver- $1,890,000 * 58,132 0 * tible 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 $1,500,000 * 46,136 0 * Arbitrage Fund c/o Palladin Group 195 Maplewood Avenue Maplewood, NJ 07040 -7- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (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 $7,100,000 2.3% 218,380 1,275,324 2.2% Alex Brown 1251 Avenue of the Americas New York, NY 10020 Delta Pilots Dis- $500,000 * 15,378 0 * ability and Survivor- ship 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 Securi- ties, 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- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (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 $10,000 * 307 0 * Pension Plan for Salaried Employees c/o Froley Revy Investment Company, Inc. 10900 Wilshire Blvd., Suite 900 Los Angeles, CA 90024 Hawaiian Airlines $90,000 * 2,768 0 * Pilots Retirement Plan c/o Froley Revy Investment Company, Inc. 10900 Wilshire Blvd., Suite 900 Los Angeles, CA 90024 HFR Convertible $250,000 * 7,689 0 * Arbitrage 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, $200,000 * 6,151 0 * Ltd.10 South Riverside Drive, Suite 1450 Chicago, Illinois 60606 Highbridge Inter- $21,000,000 7.0% 645,915 0 * national LLC P.O. Box 30554 SmB Grand Cayman Islands BWI -9- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (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 $1,075,000 * 33,064 0 * Holdings Trust c/o Froley Revy Investment Company, Inc. 10900 Wilshire Blvd., Suite 900 Los Angeles, CA 90024 Independence Blue $137,000 * 4,213 0 * Cross c/o Advent Capital Management 30 Broad Street, 30th Floor New York, NY 10004 Innovest Finanzdien- $370,000 * 11,380 0 * stleistungs 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 $4,000,000 1.3% 123,031 0 * Ltd. 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 $139,000 * 4,275 0 * Corporation c/o SSI Investment Management 357 North Canon Drive Beverly Hills, CA 90210 -10- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- Jefferies & Company $9,000 * 276 0 * Inc. c/o SSI Investment Management 357 North Canon Drive Beverly Hills, CA 90210 Jeffries & Company $1,060,000 * 32,603 0 * Inc. 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 $500,000 * 15,378 0 * Products 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 & $1,250,000 * 38,447 0 * Co. 900 Third Avenue, Suite 1000 New York, NY 10022 Lakeshore Interna- $3,000,000 1.0% 92,273 0 * tional Ltd. 601 Carlson Parkway, Suite 200 Minnetonka, MN 55305 Lancer Securities $500,000 * 15,378 0 * Cayman C/o Palladin Group 195 Maplewood Avenue Maplewood, NJ 07040 LDG Limited $300,000 * 9,227 0 * 48 Par-La-Ville Road, Suite 780 Hamilton, Bermuda HM 11 -11- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- 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, $21,162,000 7.0% 650,898 0 * L.P. 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 Man Convertible 900,000 * 27,682 0 * Bond Master Fund, Ltd. 101 Glacier Point Road, Suite D San Rafael, CA 94901 -12- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- 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 Fire- $144,000 * 4,429 0 * fighters Pension/Relief Fund c/o Advent Capital Management 30 Broad Street, 30th Floor New York, NY 10004 New York Life Insurance $1,200,000 * 36,909 0 * and Annuity Corporation 51 Madison Avenue New York, NY 10010 -13- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- New York Life $11,000,000 3.7% 338,336 0 & Insurance Company 51 Madison Avenue New York, NY 10010 Northern Income $3,000,000 1.0% 92,273 0 * Equity 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 $178,000 * 5,474 0 * Workers 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 $4,710,000 1.5% 144,869 0 * Partners 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 Palladin Securities $1,000,000 * 30,757 0 * LLC c/o Palladin Group 195 Maplewood Avenue Maplewood, NJ 07040 -14- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- 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 $704,000 * 21,653 0 * Pension 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 Robertson Stephens $6,000,000 2.0% 184,547 0 * 555 California Street, Suite 2600 San Francisco, CA 94110 -15- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- Sagamore Hill Hub $6,000,000 2.0% 184,547 0 * Fund Ltd. c/o Sagamore Hill Capital Mgmt 2 Greenwich Office Park Greenwich, CT 06831 San Diego County $2,100,000 * 64,591 0 * Employees 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 $5,970,000 1.9% 183,624 0 * Limited 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 & $1,000,000 * 30,757 0 * Kellogg LP 120 Broadway, 7th Floor New York, NY 10271 St. Thomas Trading, $1,476,000 * 45,398 0 * Ltd. 101 Glacier Point Road, Suite D San Rafael, CA 94901 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 -16- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- 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/ $6,500,000 2.2% 199,926 0 * Equity c/o Froley Revy Investment Company, Inc. 10900 Wilshire Blvd., Suite 900 Los Angeles, CA 90024 State of Oregon/ $3,875,000 1.3% 119,186 0 * SAIF Corporation c/o Froley Revy Invest- ment Company, Inc. 10900 Wilshire Blvd., Suite 900 Los Angeles, CA 90024 Sterling Invest Co. $500,000 * 15,378 0 * c/o Froley Revy Invest- ment 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 The City University $159,000 * 4,890 0 * of 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 -17- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- 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 $1,200,000 * 36,909 0 * Ltd 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 Van Kampen Harbor $4,500,000 1.5% 138,410 0 * Fund State Street Bank & Trust Co. c/o Van Kampen Asset Management Inc. 2800 Post Oak Blvd. Houston, TX 77056 Viacom Inc. Pension $46,000 * 1,414 0 * Plan Master Trust c/o SSI Investment Management 357 North Canon Drive Beverly Hills, CA 90210 -18- Number Number Percent of Shares of Shares of Common Principal Percen- into which of Common Stock Amount tage of the Notes Stock Owned Owned of Notes Out- are Con- Before After the Notes standing vertible Offering Offering Name (1) (1) (2) (3) (4) ---- --------- ---------- ---------- ---------- ---------- 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 Conver- $1,100,000 * 33,833 0 * tible Fund, LP 940 Southwood Blvd., #200 Incline Village, NV 89451 Zeneca Holdings $500,000 * 15,378 0 * Trust 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%. (1) The information set forth herein is as of June 18, 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 67,437,985 shares of common stock of Barnes & Noble outstanding as of June 11, 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. -19- 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. -20-