i2 calls $235 million of 5.25% convertibles

New York, Nov. 28 - i2 Technologies, Inc. said it will redeem $235 million of its $260 million of outstanding 5.25% convertible subordinated notes due December 2006 on Dec. 28.

The Dallas-based supply chain management company will pay a 75 basis point premium for the notes.

After the fourth quarter, i2 will look at options to redeem the remaining $25 million of the issue, according to a company press release.

Funding for the redemption announced Monday will come from i2's sale of its content and data services business for $30 million and recently completed private placement of $75 million of 5% senior convertible notes due 2015 along with cash balances.

"By redeeming $235 million of the existing notes, i2 will exit 2005 with a much stronger balance sheet," said i2 chief financial officer Michael Berry in the news release. "Another goal of the re-financing is to reduce the net interest expense for i2 heading into 2006, and as a result of these efforts i2 will reduce its annualized net interest expense by approximately $4 million."

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