DRS Technologies 2% notes convertible only into cash following Finmeccanica merger

By Angela McDaniels

Tacoma, Wash., Oct. 23 - DRS Technologies, Inc. said its 2% convertible senior notes due 2026 are now convertible solely into cash.

For each $1,000 principal amount of convertibles, the cash amount payable upon conversion is $81.00 multiplied by the adjusted conversion ratio of 17.2875 for a total of $1,400.2875.

The conversion ratio was increased by 0.5371 of a share of common stock in accordance with the indenture, according to an 8-K filing with the Securities and Exchange Commission.

DRS was acquired by Finmeccanica SpA on Wednesday for $81.00 per share and is now a wholly owned subsidiary of Meccanica Holdings USA, Inc. The enterprise value of the transaction was $5.2 billion, including the assumption of about $1.6 billion in outstanding debt.

Each share of DRS common stock was cancelled and converted into the right to receive $81.00 in cash.

Based in Rome, Finmeccanica designs and manufactures helicopters, civil and military aircraft, aero structures, satellites, space infrastructure, missiles and defense electronics and security.

DRS, based in Parsippany, N.J., supplies integrated products, services and support to military forces, government agencies and prime contractors.

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