27th Jan 2015 16:47
LONDON (Alliance News) - Derwent London PLC Tuesday said it has received notices from all of the bondholders confirming that they will be taking up their options to convert their bonds in full under the company's outstanding 2016 convertible bonds.
On December 17, the company sent out notices to redeem all of its outstanding 2016 convertible bonds. The bonds were issued in June 2011, paying a coupon of 2.75% per year and with a redemption date of July 15, 2016.
The conversion price of the bonds is GBP22.22 per share, which at the time of issuance, represented a 30% premium over the reference share price of GBP17.09 at the time the bonds were issued. The company said GBP60.4 million worth of bonds were converted, leaving it with bonds worth GBP114.6 million.
Derwent shares closed down 1.7% on Tuesday to 3,208.46 pence per share.
On Tuesday, Derwent said it has now received acceptances from 100% of the bondholders, which will result in Derwent cancelling the bonds and issuing 7.9 million shares in the company. The first 585,057 shares have been issued and the additional shares will be issued "as required over the next few days," it said in a statement.
Derwent exercised its option to redeem the convertible bonds due to the "strong recent share price" and said it will leave the company "with further improved cashflow and interest cover," said Derwent.
By Joshua Warner; [email protected]; @JoshAlliance
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