DRS Technologies starts change-of-control tender for 2% convertibles

New York, Nov. 12 - DRS Technologies, Inc. said it has begun an offer to buy its 2% convertible senior notes due 2026 following its acquisition by Finmeccanica SpA.

The offer is required because the merger resulted in a fundamental change, as defined in the note indenture.

Investors who tender their notes will receive par plus accrued interest, or an estimated $1,007.22 per $1,000 principal amount.

The offer ends at 5 p.m. ET on Dec. 11.

DRS observed that because of the merger the notes are convertible. Holders who convert will receive $1,356.7824 in cash per $1,000 principal amount. The figure was calculated using the conversion rate of 16.7504 and the $81.00 per share payable in the merger.

Holders who convert before the fundamental change purchase date of Dec. 12 will receive a higher conversion rate of 17.2875, resulting in $1,400.2875 in cash per $1,000 principal amount.

DRS Technologies is a Parsippany, N.J., supplier of products and services to the military, government agencies and prime contractors.

Finmeccanica is based in Italy and is a manufacturer of helicopters, civil and military aircraft, aero structures, satellites, space infrastructure, missiles, defense electronics and security.

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