CryoLife to convert 6% preferreds

By Susanna Moon

Chicago, June 4 - CryoLife, Inc. is exercising the right to convert its 6% convertible preferred stock into the company's common stock on June 25, according to a press release.

Provisions allow the company to convert its preferred stock into common stock if the common stock closes above $12.06 per share for any 20 trading days out of 30 consecutive trading days. The condition was satisfied on Monday.

Each share of $50 convertible preferred stock is convertible into 6.2189 shares of common stock based on the conversion rate of $8.04 per share.

As of Monday, there were 277,600 preferred shares outstanding, convertible into 1,726,366 common shares.

The company will also issue 69,054 shares of common stock, worth $833,000, at $12.06 per share, to the preferred shareholders as a dividend make-whole payment, in lieu of cash, for the aggregate dividends on the preferred shares that the company is obligated to pay through April 1, 2008.

Upon conversion of the preferred stock, the company will take a non-cash charge to earnings for the dividend make-whole payment. The amount of the charge, which could be material, cannot be determined before June 25.

Atlanta-based CryoLife is a biomaterials, medical device and tissue processing company.

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