Marine Harvest exercises redemption right on convertibles due 2015

By Tali David

Minneapolis, Nov. 13 - Marine Harvest ASA is exercising its right to redeem the remaining amount on its €224.9 million of convertible bonds due Feb. 23, 2015 that are not converted by bondholders by Nov. 21, according to a notice

If bondholders decide to convert all remaining bonds into shares, Marine Harvest will issue about 356 million new shares. All bonds that are not converted into shares will be redeemed at par plus accrued interest.

The company said the notes became convertible because the company's closing common stock price was greater than or equal to 130% of the conversion price for at least 20 trading days during the 30 consecutive trading days.

The current conversion price is €0.6443 per share. Assuming the proposed NOK 0.075 per share dividend is approved at the EGM of Nov. 15, the conversion price will be adjusted accordingly from the ex-dividend date on Nov. 18.

The adjustment will also incorporate the impact of the NOK 0.05 per share dividend approved on Sept. 16 as this fell below the threshold for conversion price adjustments.

The final settlement date is Dec. 11.

Marine Harvest is an Oslo-based seafood and salmon farming company.

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