Belden CDT swaps $110 million of debt |
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Published
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Mon, 05 Mar 2007 19:07
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ST. LOUIS (AP) - Electronic cable maker Belden CDT Inc. said Monday it has commenced an offer to exchange $110 million of its outstanding old debt securities for new ones.The company said it would exchange each $1,000 principal amount of the old 4 percent convertible subordinated debentures due 2023 for a new series of 4 percent convertible subordinated debentures also due the same year.As of March 5, $110 million of the old debentures was outstanding, the company said.Belden will pay a cash exchange fee of $2.50 per $1,000 principal amount of the old debentures accepted for exchange.The company said the offer expires 5 p.m. EDT on April 2, unless extended.Belden said the new debentures are essentially the same as the old debentures except the new ones will require the company to settle all conversions for cash or, in certain circumstances, cash and shares of its common stock.The new debentures also provide for an increase in the conversion rate depending on certain conditions that occur before July 21, 2008.The old debentures are convertible only into shares of Belden's common stock and did not provide for any increase in the conversion rate.Debentures are debt securities that have no collateral and are backed only by the creditworthiness and integrity of the borrower.Shares of Belden fell 8 cents to $47.17 in midday trading on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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