Seair holders vote to extend maturity of 8% convertibles, lift coupon

By Susanna Moon

Chicago, June 27 - Seair Inc. said holders voted to amend the 8% secured subordinated convertible redeemable debentures, extending the maturity to Oct. 31, 2012 from June 21, 2012 and lifting the interest rate to 10% from 8%.

Fifty-five holders representing $6,354,000 of the convertibles, or 72.61% of the $8,751,000 of outstanding principal amount, voted unanimously in favor of the amendments, according to a company press release.

The trustee for the holders has expressed concern about the notice period provided for the June 20 meeting, and Seair said it "is working diligently to resolve these concerns so that the supplemental indenture can be executed in a timely manner."

"We have a clear mandate to pursue a variety of financing alternatives that will benefit the debentureholders and Seair's shareholders," Harold Kinasewich, Seair's president and chief executive officer, said in the release.

The company said on May 29 that it proposed amendments to the terms of the convertibles. The debentures were originally issued on June 21, 2007 via CIBC Mellon Trust Co.

As previously noted, Seair was 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 would

• 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 previously said it would 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 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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