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Walter Industries exchanges $99.12 million 3.75% convertibles, rescinds stock split
By Jennifer Chiou
New York, Nov. 29 - Walter Industries, Inc. issued 5,553,723 shares and paid an inducement premium of $13,031,200 in exchange for $99.12 million of its 3.75% convertible senior subordinated notes, according to an 8-K filing with the Securities and Exchange Commission.
The company also paid $638,355.41 in accrued interest.
The company exchanged the notes at a conversion ratio of 56.0303 shares per $1,000 principal amount of notes, as specified in the indenture.
Walter Industries also announced its board rescinded the previously announced 2-for-1 stock split after resolving civil lawsuits with CC Arbitrage, Ltd. and CNH CA Master Account, LP.
On Nov. 22, the company issued 406,411 shares in exchange for $7.257 million of its 3.75% notes, while also paying an inducement premium of $616,845 as well as accrued interest of $15,874.70.
On Nov. 17, the company reported that an additional holder of its 3.75% convertibles filed a motion to stop the company's 2-for-1 stock split and planned spinoff distribution of its 85.8 million shares of Mueller Water Products, Inc. series B common stock to Walters Industries shareholders. CNH holds $66.575 million of the securities.
On Nov. 13, the company paid an inducement premium of $243,000 and accrued interest of $2,351.25 and issued 151,281 shares in exchange for $2.7 million of the convertibles.
And on Nov. 3, the company said it entered into an agreement to issue 616,333 shares in exchange for $11 million of its 3.75% convertibles. At the time, the company paid an inducement premium of $1.1 million, plus accrued interest of $1,145.83.
The Bank of New York Trust Co., NA is the trustee.
Walter Industries is a Tampa, Fla.-based company involved in homebuilding, financing, industrial products, natural resources and other businesses.
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