Maverick Tube's 1.875% convertibles putable at par until Nov. 6

By Angela McDaniels

Seattle, Oct. 10 - Maverick Tube Corp. said holders of its 1.875% convertible senior subordinated notes due 2025 may put the notes back to the company at any time until the close of business on Nov. 6.

Noteholders will receive par plus accrued interest up to but excluding the repurchase date.

The put option is being granted in connection with the acquisition of Maverick Tube by Tenasis SA and OS Acquisition Corp. on Oct. 5 and is required under the indenture governing the notes, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The notes are convertible into 26.703 shares of Maverick Tube common stock per $1,000 principal amount of notes until Nov. 6 and into 24.6406 shares thereafter.

In connection with the merger, however, each share of Maverick Tube common stock was converted into the right to receive $65. Therefore, noteholders who convert will receive $1,694.60 per $1,000 principal amount of notes converted on or before Nov. 6 and $1,601.64 per $1,000 principal amount of notes converted thereafter.

In addition, notes converted on Nov. 1 through Nov. 15 must be accompanied by the payment of an amount equal to the interest payable on Nov. 15 - $9.375 per $1,000 principal amount of notes, according to the filing.

Maverick is a steel tube manufacturer based in Chesterfield, Mo.

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