COM DEV issues 5.8 million shares for C$18 million convertible debentures

By Jennifer Chiou

New York, June 23 - COM DEV International Ltd. said it issued 5,849,829 shares in exchange for $17.954 million or 99.74% of its C$18 million of 6.75% convertible debentures due Dec. 31.

Holders had until June 21 to convert their debentures into COM DEV shares at a price of C$3.15.

Remaining notes were redeemed for $141,412 on June 22.

The redemption price for each C$1,000 of debentures was C$1,032.178, which included C$32.178 of accrued interest.

"COM DEV has now retired $38 million of debt over the past three and a half years, leaving us debt free," chief executive officer John Keating said in a news release.

"With no debt, and having recently established at total of $45 million in credit availability, all of which remains untapped, we are now very well positioned to fund further growth."

The company previously said that the recent strength of its share price contractually requires the early redemption of the debentures.

The securities were issued Dec. 6, 2001.

Based in Cambridge, Ont., COM DEV designs and manufactures space hardware subsystems. The company announced the redemption on May 5.

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