Foster Wheeler exchanges 17,731 more 9% trust preferreds

By Jennifer Chiou

New York, Aug. 11 - Foster Wheeler Ltd. said it accepted a further 17,731 shares of its 9% trust preferred securities in addition to the 2.6 million it exchanged on Aug. 1 in its equity-for-debt exchange.

On Aug. 1, the company announced an additional exchange period running through Aug. 10.

That extra time followed an offer, on the same terms, that ran through July 29 in which holders tendered 2.6 million or 91% of its 2.85 million shares of 9% trust preferred securities.

Those who tendered securities will receive 2.16 shares per trust preferred.

As of Aug. 10, 2.6 million or 91.6% of the trust preferred securities had been tendered.

"I am very pleased with the results of the overall exchange offer, which has reduced consolidated debt, future annual interest expense and deferred interest expense and improved the company's net worth," said Raymond J. Milchovich, chairman, president and chief executive officer, in a news release.

The exchange reduced consolidated debt by $64.8 million, reduced annual interest expense by $8.7 million, improved net worth by $87 million and eliminated $25.9 million of deferred interest.

Clinton, N.J.-based Foster Wheeler is an engineering and construction firm specializing in energy and chemical facilities.

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