Oglebay Norton ups size of convertible preferred offering, sets eligibility date

By Ted A. Knutson

Washington, Dec. 21 - Oglebay Norton Co. has raised the number of shares of series A convertible preferred shares it will sell in its rights offering to 5.37 million shares from 5.01 million, according to an S-1/A registration statement with the Securities and Exchange Commission.

With the increase in the number of convertibles, projected gross proceeds have risen to $53.7 million from $50.1 million.

The preferred stock will be issued on the exercise of subscription rights by holders of the company's 10% senior subordinated notes due Feb. 1, 2009.

Investors who hold the 10% notes as of the close of business Dec. 23 will be eligible, the filing said. Holders will receive one subscription right for the purchase of 80 shares of convertible preferred stock per $1,000 principal amount of senior subordinated note claims.

The subscription rights expire at 5 p.m. ET on Jan. 25.

Along with the rise in convertibles in the offering, Oglebay has increased the number of common shares to be issued on the exercise of warrants being distributed under the company's bankruptcy reorganization plan to 5.95 million from 5.54 million. Oglebay does not expect to receive significant funds from the warrants exercise.

The Cleveland-based minerals and aggregates company's Chapter 11 case number in the U.S. Bankruptcy Court for the District of Delaware is 04-10558.

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