PSS World announces make-whole conversion period for 3.125% notes

By Jennifer Chiou

New York, Feb. 22 - PSS World Medical, Inc. announced that in connection with the fundamental change resulting from its merger agreement, the company will increase the conversion rate for its 3.125% convertible senior notes due 2014.

Dated as of Oct. 24, the agreement and plan of merger involves PSS World, Palm Merger Sub, Inc. and McKesson Corp.

U.S. Bank NA is the trustee.

During the make-whole conversion period, which began on Feb. 22 and continues through March 14, the company will increase the conversion rate for the notes by 1.6151 shares per $1,000 principal amount.

Upon conversion, the cash consideration due will be equal to $1,413.73 per $1,000 principal amount based on the make-whole conversion rate of 48.7493.

The repurchase date is set for March 15.

Outside of the make-whole conversion period, holders may convert their notes at $1,366.90 per $1,000 principal amount, based on a conversion rate of 47.1342, until 5 p.m. ET on July 30, 2014.

Questions may be directed to U.S. Bank Bondholder Services (800 934-6802).

PSS World Medical is a Jacksonville, Fla.-based marketer and distributor of medical products to physicians, elder care providers and alternate-site health care providers. Its shares (Nasdaq: PSSI) closed at $28.92 on Feb. 21.

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