Marvel says 84.6% of convertibles tendered in exchange offer

New York, Nov. 19 - Marvel Enterprises, Inc. said 17.6 million shares or 84.6% of its 8% cumulative convertible exchangeable preferred stock were tendered in its exchange offer, which expired Monday.

Under terms of the exchange, Marvel will issue 1.39 shares of common stock for each share of preferred stock tendered. As a result, Marvel will issue 24.5 million shares in the exchange, increasing its total outstanding to 60.8 million.

The exchange reduces the amount of convertibles outstanding to $32.1 million - 3.21 million shares - from $208.1 million - 20.81 million shares - previously.

The New York entertainment company said that as anticipated Morgan Stanley, Whippoorwill Associates and company vice chairman Isaac Perlmutter tendered all the 11.3 million shares of preferred stock they owned.

Excluding a one-time non-cash charge of $55.3 million for the exchange, Marvel said the exchange will be immediately accretive to earnings as it will reduce the pay-in-kind dividends on the preferred to stock to $2.7 million a year from $16.3 million.

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