Lennox to redeem all $143.75 million 6.25% convertibles due 2009

By Jennifer Chiou

New York, Sept. 7 - Lennox International Inc. announced the redemption of all its outstanding $143.75 million of 6.25% convertible subordinated notes due 2009 at 103.571%.

The Dallas, Texas, heating, ventilation, air conditioning and refrigeration company will also pay accrued interest up to but excluding the redemption date of Oct. 7.

Before the close of business on Oct. 6, noteholders may convert their securities at a conversion price of $18.09 per share, equal to 55.2868 shares of Lennox stock per $1,000 principal amount of notes.

The company said it expects all notes will be converted into its stock, noting its stock price has increased over 65% since the convertibles were issued on May 2, 2002. On Wednesday, Lennox stock closed up $0.44 at $24.84.

On May 3, 2002, the company increased its offering of the convertibles to $125 million from $100 million and priced them with an initial conversion premium of 25%.

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