Alumina unit buys back, cancels $128.42 million of 2% convertibles

By Marisa Wong

Madison, Wis., Dec. 20 - Alumina Ltd. said that its wholly owned subsidiary, Alumina Finance Ltd., will repurchase and cancel $128.42 million of tendered 2% guaranteed convertible bonds due May 16, 2013.

Alumina Finance began tendering for its $296 million of outstanding 2% convertible bonds due 2013 on Dec. 2. The tender offer expired at 10 a.m. ET on Dec. 15.

The subsidiary will pay par plus accrued interest for the purchased bonds.

Settlement is expected to occur on Dec. 21. Following completion of the offer, there will be $167.58 million of the bonds outstanding.

Bondholders may put the convertibles on May 16, 2011 at par plus accrued interest.

The repurchase of the bonds this year will bring forward the non-cash charge to the company's 2010 underlying earnings, representing the unwind of the discount in the liability, of $1.3 million, the company noted in a press release.

Bank of New York Mellon was the tender agent.

Melbourne, Australia-based Alumina is involved in bauxite-mining activities.

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