LGF pushes back redemption date for Hilton Group's 3 3/8% convertibles to June 14

By Jennifer Chiou

New York, May 11 - LGF Ltd., formerly Hilton Group Finance (Jersey) Ltd., delayed the planned redemption of the £17.832 million outstanding of the original £300 million 3 3/8% convertible bonds due 2010 guaranteed by Ladbrokes plc, formerly Hilton Group plc.

LGF announced plans for the redemption on April 25 but said Wednesday that the notice was not delivered through the clearing system in a timely manner. The company said bondholders should ignore the previously announced May 25 redemption date.

The company will pay par plus accrued interest up to but excluding June 14, the redemption date.

Holders may convert the convertibles into ordinary shares at a price of 293p each until the close of business on June 8. The company's stock closed at 422.75p on Wednesday.

As already announced, the original conversion price of 260p was adjusted to 736p per share to reflect the reverse split the company performed in March, which consolidated every 17 shares of 10p each into six new shares of 281.3p each.

The conversion price was then further adjusted to 293p per share to reflect the special 233.4p dividend plus a final dividend for the year ended Dec. 31 of 6.6p per share.

LGF is converting the convertibles under an optional redemption feature, which allows it to call the convertibles if more than 85% of the convertibles have been converted.

Ladbrokes is a leisure services company based in Hertfordshire, England, which operates hotels and gambling establishments.

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