School Specialty calls all $149.5 million of 6% convertibles

Pittsburgh, Aug. 5 - School Specialty Inc. will redeem all $149.5 million of its 6% convertible subordinated notes due Aug. 1, 2008 at a price of 103.43% of the principal amount plus interest accrued to the Aug. 20 redemption date, according to a company news release.

The notes can be converted into shares of common stock before the close on Aug. 19 at a rate of 30.9693 shares per $1,000 principal amount. The conversion price is about $32.29 per share. Cash will be paid in lieu of fractional shares.

About 4.6 million shares will be issued if all the notes are converted, the release said.

School Specialty stock closed at $33.92 on Wednesday.

Redemption payments will be made on Aug. 23. Any notes not converted before the close on Aug. 19 will be automatically redeemed on Aug. 20.

School Specialty is a Greenville, Wis., education company.

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