CP Ships tenders for $200 million 4% convertible notes

By Angela McDaniels

Seattle, Nov. 7 - CP Ships Ltd. said it has started a cash offer for all of its $200 million 4% senior subordinated convertible notes due 2024.

The company will pay cash equal to 100% of the principal amount, plus accrued interest up to but excluding the date of purchase.

The offer expires at 5 p.m. ET on Dec. 14.

CP Ships said it is required to offer to purchase the convertible notes as a result of the acquisition of 88.97% of its common shares by TUI AG.

The company will also solicit consents from convertible noteholders to amend the indenture governing the convertible notes.

CP Ships will pay consenting convertible noteholders $2.50 for each $1,000 principal amount, provided that CP Ships receives consents for a majority of the convertible notes outstanding.

The consent solicitation will expire at 5 p.m. ET on Dec. 16.

CP Ships expects to pay for convertible notes properly deposited under the offer and not withdrawn on Dec. 19.

The convertible notes will become convertible into shares of CP Ships on Dec. 5.

The current conversion rate is 39.6542 shares per $1,000 aggregate principal amount of convertible notes, subject to adjustment in certain circumstances. CP Ships said it has the option to deliver cash in lieu of shares issuable upon any conversion of the notes.

CP Ships, a subsidiary of TUI AG, provides international container transportation and is based in Gatwick, England.

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