SM Investments calls all $33.2 million 1.625% convertibles due 2017

By Toni Weeks

San Luis Obispo, Calif., March 20 – SM Investments Corp. issued a call to redeem all of its outstanding $33.2 million of 1.625% convertible bonds due 2017, according to a company notice.

The bonds will be redeemed at about 104.127 plus accrued interest up to but excluding the redemption date of April 19. In total, the company will pay $34,570,172.55 to redeem the convertibles, which includes accrued interest of $95,911.11.

The company is permitted to redeem the bonds in whole but not in part because the closing price of the shares for each of 30 consecutive trading days was at least 130% of the applicable early redemption amount divided by the conversion ratio of PHP 624.625. This condition was satisfied as of close of business on March 18.

Bondholders may, as an alternative, convert their bonds before April 9. If all bondholders elect to convert their called bonds, about 2.3 million common shares of the company will be issued upon conversion, the notice said.

The Pasay City, Philippines-based company issued $250 million of the convertibles in February 2012.

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