Harakosan to repurchase 99.4% of convertibles at 15 under agreement, calls remainder

By Angela McDaniels

Tacoma, Wash., March 23 - Harakosan Co., Ltd. will repurchase ¥5.97 billion, or 99.4%, of its ¥6 billion of convertible notes due 2012 for 15% of par under an optional securities purchase agreement, according to a company news release.

Of the ¥894.7 million purchase price, ¥547.5 million was paid on Friday and ¥347.2 million will be paid on Thursday.

The ¥35 million of convertibles not covered by the purchase agreement will be redeemed at 15% of par, of which ¥2.6 million will be paid on March 31 and the remainder on Sept. 30, 2009.

As previously reported, the company received notice of early redemption requests at par from holders of ¥6 billion of the convertibles and sought noteholder consent to redeem the convertibles at 15% of par.

Noteholders granted consent at a meeting on March 13. They also agreed to waive any default stemming from non-payment of the principal due on Feb. 20.

At that time, the company agreed to extend the deadline for entering into the purchase agreement to Friday.

Harakosan is a Shimonoseki-shi, Japan-based real estate company.

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