Accuride adjusts conversion rate, makes PIK payment for 7.5% notes

By Jennifer Chiou

New York, Aug. 27 - Accuride Corp. modified the conversion rate for its 7.5% senior convertible notes due 2020 to 1,407.2343 shares per $1,000 principal amount, according to an 8-K filing with the Securities and Exchange Commission.

The adjustment moved the conversion price of the notes to $0.71 per share.

The rate was initially set at 1,333.3333 for a conversion price of $0.75. The company's shares (OTCBB: ACUZ) closed at $1.13 apiece on Friday.

Accuride also informed holders that it made a payment of PIK interest on the notes by increasing the amount of notes by $5,250,001.

As already announced, interest is payable in kind through Feb. 26, 2013. When the PIK interest is included, the principal amount of convertibles registered for trading is $174.6 million.

The notes are callable at par beginning Feb. 26, 2013 if the company's closing stock price is at least 2.25 times the conversion price for 20 out of 30 consecutive trading days.

The original $140 million of convertibles was issued upon the company's emergence from Chapter 11 bankruptcy in February.

Accuride manufactures commercial vehicle components and is based in Evansville, Ind.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.