New Issue: International Shipholding prices $40 million convertible preferreds to yield 6%, up 34%

New York, Dec. 31 - International Shipholding Corp. priced $40 million of convertible exchangeable preferred stock to yield 6% with a 34% initial conversion premium.

Ferris, Baker Watts, Inc. was underwriter for the registered deal.

There is a $4 million greenshoe available.

The New Orleans marine freight company will use proceeds to buy two used ships and to add a second cargo deck to two vessels operating in its rail-ferry service. Remaining proceeds will be used for working capital and general corporate purposes.

Issuer:	International Shipholding Corp.
Issue:	Convertible exchangeable preferred stock
Amount:	$40 million
Greenshoe:	$4 million
Maturity:	Perpetual
Dividend:	6%
Price:	Par of $50
Yield:	6%
Conversion premium:	34%
Conversion price:	$20
Conversion ratio:	2.5
Call:	Dec. 31, 2006 onwards at 105% subject to 150% hurdle
	Dec. 31, 2007 onwards at 102%, declining to par on Dec. 31, 2008
Exchange:	From March 31, 2006 to Dec. 31, 2014 for 6% convertible subordinated notes due 2014 at company's option
Pricing date:	Dec. 29
Settlement date:	Jan. 6
Underwriter:	Ferris, Baker Watts, Inc.
Distribution:	Registered

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