Alloy exchanges $21.5 million 5.375% convertibles for 642,327 shares

By Jennifer Chiou

New York, Sept. 14 - Alloy, Inc. issued 642,327 shares in exchange for $21.5 million of its 5.375% convertible senior debentures due 2023, according to an 8-K filing with the Securities and Exchange Commission.

The New York-based marketing company added that following its spinoff of Delia*s in December 2005 and Alloy's one-for-four reverse stock split on Feb. 1, each $1,000 in principal amount of debentures is convertible into 29.85075 Alloy shares and 59.7015 Delia*s shares.

On Aug. 28, Alloy amended the indenture of the 5.375% convertibles to eliminate all of the conditions to convertibility. The debentures had been contingently convertible at 110%.

As a result of the amendment, the notes are immediately convertible into shares of Alloy common stock at a conversion price of $33.50 or shares of the common stock of former subsidiary Delia*s, Inc. at $16.75.

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