Alloy eliminates 110% contingent conversion threshold for 5.375% convertibles

By Angela McDaniels

Seattle, Aug. 28 - Alloy, Inc. amended the indenture for its $69.3 million of 5.375% convertible senior debentures due 2023 to eliminate all of the conditions to convertibility, according to an 8-K report filed with the Securities and Exchange Commission on Monday.

Previously, they were contingently convertible at 110%.

Now the notes are immediately convertible into shares of Alloy common stock at a conversion price of $33.50 or shares of the common stock of former subsidiary Delia*s, Inc. at $16.75

Alloy sold $69.3 million of the notes with a 25% initial conversion premium in a Rule 144A deal via lead manager Lehman Brothers in July 2003.

On Monday, New York-based marketing company's stock closed at $10.51 (Nasdaq: ALOY) and Delia*s stock closed at $6.95 (Nasdaq: DLIA).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.