Agricore United holders convert all 9% convertibles ahead of redemption

By Jennifer Chiou

New York, Jan. 9 - Agricore United announced holders converted all of its C$105 million of 9% convertible unsecured subordinated debentures due Nov. 30, 2007 ahead of the Jan. 10 redemption date.

As a result, the company issued 13,780,758 limited voting common shares.

The company noted that there are now 59,227,932 limited voting common shares outstanding.

The debentures will be delisted from the Toronto Stock Exchange.

The number of shares to be issued in the redemption was to be determined by dividing the principal amount of debentures on Jan. 10 by 95% of the volume-weighted average trading price of the shares on the Toronto Stock Exchange for 20 consecutive trading days ending on Jan. 3.

Holders could convert their debentures prior to 5 p.m. ET on Jan. 9 at a conversion rate of 133.3333 shares for each C$1,000 principal amount.

The Winnepeg, Man., agricultural company previously announced in its second-quarter report that it expected to exercise its option to redeem the debentures, which will improve its leverage ratio and lower its interest costs for the 2007 fiscal year.

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