DST's senior convertible debentures remain convertible through September

By Devika Patel

Knoxville, Tenn., Aug. 5 - DST Systems Inc. said in a 10-Q filed Tuesday with the Securities and Exchange Commission that holders of its $839.8 million in outstanding senior convertible debentures may convert their holdings through Sept. 30.

The investors were eligible to convert these bonds during the three months ended March 31 and June 30, as a result of DST's common stock trading above 120% of the applicable conversion price, $49.08, for at least 20 trading days during the period of 30 consecutive trading days ended Dec. 31, 2007 and March 31.

Actual conversions for the six months ended June 30 have been less than $100,000, and the company used cash to settle the principal portion of these conversions.

The debentures continue to be convertible through Sept. 30, as the stock price conversion feature was still in effect on June 30.

As previously reported, on July 10, the company said that holders of its $300 million of 3.625% series B convertible senior debentures due 2023 may force the company to buy back the notes on Aug. 15 at par plus interest.

Holders who wish to participate should contact the trustee, Bank of New York Mellon (800 254-2826).

The Kansas City, Mo., provider of information processing and software services plans to use cash flow from operations, available cash, capacity under credit facilities, or investments to fund the put.

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