Orco plans redemption of 5.5% convertible bonds

By Jennifer Chiou

New York, March 7 - Orco Property Group SA announced that it plans to redeem its 5.5% convertible bonds due 2011 on March 26.

Bondholders may convert their securities at a ratio of one bond for one share until March 19.

Those who do not convert their bonds will receive supplementary interest for the life of the investment equal to a gross redemption yield on the basis of 8%. The total amount of the reimbursement will be of €34.94 per bond, made up of €0.42 interest on the nominal of €32.40, increased by a reimbursement premium of €2.12 for Jan. 1 to March 26.

The company also said it issued 41.651 additional shares as a result of the conversion of 41.651 of its bonds.

Since the original bond issue, the company said that 807,892 of the 1,001,563 bonds have been converted.

Orco is a Luxembourg-based real estate developer that focuses on Central and Eastern European markets.

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