tw telecom calls all $211.5 million 2.375% convertible notes due 2026

By Toni Weeks

San Luis Obispo, Calif., May 29 - tw telecom inc. issued a call to fully redeem its $211.5 million outstanding principal amount of 2.375% convertible senior debentures due 2026, according to an 8-K filing with the Securities and Exchange Commission.

The debentures will be redeemed on July 3 at par plus accrued interest, for a total payment of $1,006.06944443 per $1,000 principal amount redeemed.

Holders may instead elect to convert their notes by 5 p.m. ET on July 2. According to a company press release, the conversion rate is about $18.6405 per share, or 53.6466 shares per $1,000 principal amount.

The actual conversion price will be determined by multiplying the last reported sale price of the company's common stock on each trading day of the 20-day cash settlement averaging period beginning June 3 by the conversion rate in effect on that day, divided by 20. The company will settle its conversion obligation in cash, the release said.

The closing price for the company's common stock (Nasdaq: TWTC) on May 28 was $28.24.

Following the conversion or redemption, the company will have no outstanding convertible debt.

Wells Fargo Bank, NA is the trustee.

The company is a Littleton, Colo.-based provider of managed data, internet and voice networking solutions to businesses and large organizations.

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