BlackRock Latin American plans to tender for $64 million convertibles

By Susanna Moon

Chicago, Aug. 23 - BlackRock Latin American Investment Trust plc said it plans a tender offer for all of its outstanding $64 million convertible bonds.

The purchase price will be par of $1,000, less the cost of implementing the tender offer, according to a company press release.

The tender offer notice will be sent to bondholders on Aug. 30. Tendered bonds will be canceled on Sept. 13, the release noted.

Interest will be paid on the bonds up to but excluding Sept. 15 or, if not canceled on Sept. 13, up to but excluding cancellation date.

BlackRock said that each of the directors who holds bonds currently intends to participate in the tender offer in full.

If bonds with a value of less than $20 million remain outstanding after the tender offer is completed, or less than 25% of par, the company may convert the bonds.

Funding for the offer will be financed by a combination of a disposal of the company's fixed interest holdings, cash on hand and use of the company's overdraft facility. If there is a shortfall in the funds required or the investment manager believes that a lower level of gearing is appropriate, cash will be raised via a disposal of equities, the release said.

BlackRock is an investment management firm based in New York.

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