Nexans asks 3.125% convertible Oceane holders to allow early redemption

By Angela McDaniels

Seattle, April 26 - Nexans said it will hold a meeting of holders of its 3.125% convertible bonds in the Oceane structure due 2010 at 10 a.m. CET May 15 to propose the amendment of the early redemption clause in the indenture governing the bonds.

The proposed amendment would give the company the right to redeem the convertibles at any time. Currently, Nexans may only redeem the convertibles if the prevailing conversion ratio multiplied by the average opening price of Nexans' shares exceeds 130% of the par value of the bonds for 20 consecutive business days.

Convertible holders who consent to the proposed amendment will receive a €1.80 payment per convertible on May 18. At least two-thirds of the convertible holders must attend the meeting if the approval is to be valid, according to a company news release.

Should the company receive approval of the amendment and decide to redeem the convertibles, convertible holders, including those who convert before the redemption, will receive accrued interest to the redemption date.

The Paris-based cable manufacturer advised that should it receive approval, it "wishes to [redeem the convertibles] rapidly."

The call for the meeting follows the board of directors' meeting on March 29, during which the board decided to cancel 2,221,199 treasury shares held by the company in order to clarify its balance sheet structure and eliminate further financial charges.

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