Greatbatch exchanges $67.8 million more 2.25% convertibles for convertibles with net share settlement

By Angela McDaniels

Seattle, March 29 - Greatbatch, Inc. entered into separate privately negotiated agreements on Tuesday under which it will exchange $67.8 million of its $170 million 2.25% convertible subordinated debentures due 2013 for an equivalent amount of new 2.25% convertible subordinated debentures due 2013, according to an 8-K report filed with the Securities and Exchange Commission on Thursday.

The transactions are expected to close on April 2.

These exchange agreements are in addition to the agreements the company announced on March 23 under which it will exchange $50 million of the outstanding convertibles for new convertibles. Those agreements are expected to close on March 28.

The new convertibles contain a net share settlement feature that requires Greatbatch to make any payment on conversion up to par in cash. Value over par will be settled in stock or cash at the company's option.

The initial conversion price of the new convertibles is $34.70, versus $40.29 for the currently outstanding convertibles.

The new convertibles are callable at any time after June 20, 2012 and are putable upon certain fundamental changes affecting the company.

The new convertibles do not contain the June 15, 2010 put option of the currently outstanding convertibles.

Clarence, N.Y.-based Greatbatch - formerly Wilson Greatbatch Technologies Inc. - develops and manufactures components used in implantable medical devices.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.