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Anixter says virtually all LYONs due 2033 exchanged for zero-coupon convertibles due 2033
New York, Dec. 8 - Anixter International Inc. said virtually all its existing Liquid Yield Option Notes due 2033 were tendered in its offer to exchange them for zero-coupon convertible notes.
By the expiration date of midnight ET on Dec. 7, holders had tendered $378.130 million principal amount of the $378.135 million old securities.
An exchange fee of $1 will be paid for each $1,000 principal amount of the LYONs exchanged for the new convertibles.
Anixter said it was carrying out the exchange in response to new accounting rules effective Dec. 15 which will require it to include all the common stock that would be issued on conversion of the LYONs in its calculation of fully diluted earnings per share. The LYONs would dilute earnings per share even if they are not in the money and the conditions to conversion are not satisfied.
The new convertibles will be convertible into cash up to the accreted principal amount and stock for the remainder of the conversion value. By comparison, the LYONs are convertible into stock, cash or a combination of cash and stock.
In addition, the put on the new convertibles will be paid in cash, not cash, stock or a combination as is the case with the LYONs.
Otherwise the new convertibles are identical to the LYONs.
Merrill Lynch & Co. (contact Liability Management Group at 888 654-8637 or call collect 212 449-4914) is the dealer manger for the exchange. The Bank of New York (212 298-5098) is the exchange agent. Morrow & Co. Inc. (banks and brokers call 800 654-2468, others call collect 212 754-8000) is the information agent.
Chicago-based Anixter is an electrical and electronics parts manufacturer.
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