Charles River Associates changes 2.875% convertibles to net share settlement

New York, Dec. 15 - Charles River Associates Inc. said it has changed its 2.875% convertible senior subordinated debentures due 2034 to net share settlement.

The irrevocable decision means the company will pay cash up to the principal amount for any conversions with the remainder to be paid in stock.

The Boston economics, finance and business consulting firm said it made the move in response to new accounting regulations for contingent convertible securities. It will now be able to continue to use the treasury stock method of accounting for the convertibles, allowing it to report dilution only when the average stock price per share exceeds the $40 conversion price.

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