Seair wants to extend maturity of 8% convertibles, lift coupon to 10%

By Toni Weeks

San Diego, May 29 - Seair Inc. said it has proposed amendments to the terms of its 8% secured subordinated convertible redeemable debentures to extend the maturity date to Oct. 31, 2012 from June 21, 2012 and to increase the interest rate to 10% from 8%. The debentures were originally issued on June 21, 2007 via CIBC Mellon Trust Co.

According to a news release, Seair is exploring different financing alternatives, including a private placement financing, a rights offering to existing shareholders or other forms of financing prior to the amended maturity date.

The company said the amendments will

• Avoid the risk that it will not have the cash resources to redeem the debentures on June 21;

• Permit the company to build on momentum from the revitalization and complete deployment of the fleet of portable wastewater treatment units, which occurred in winter of 2012;

• Provide an extended period during which debentureholders will receive a return on their investment; and

• Provide debentureholders with an opportunity to exchange debentures for new ones with pricing and terms in line with the anticipated private placement.

The company will provide its debentureholders with the opportunity to exchange their debentures for new ones on or before the Oct. 31 maturity date and will incorporate conversion pricing consistent with the share pricing on any anticipated financing activities.

Seair is seeking approval to the amendments by debentureholders at a meeting scheduled for at 4 p.m. ET on June 20.

Seair develops proprietary equipment that diffuses gases, such as oxygen, ozone and carbon dioxide, into liquids. The company is based in Edmonton, Alta.

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