Vector Group to issue stock, cash in exchange for $70 million 6.25% convertibles

By Jennifer Chiou

New York, June 8 - Vector Group Ltd. said that investment entities affiliated with Phillip Frost and Carl C. Icahn agreed to convert $70.0 million of the company's 6.25% convertible subordinated notes due July 15, 2008.

The Miami-based tobacco company said it will issue 3,283,303 shares for the notes, plus an additional 916,697 shares and $1,738,100 of accrued interest.

Notes that are not involved in the exchange are callable at a redemption price of 102.083% of principal amount or $71.5 million, plus accrued interest.

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