Spacehab begins exchange for 8%, 5.5% convertibles

By Jennifer Chiou

New York, Aug. 31 - Spacehab, Inc. said it launched an exchange offer for any and all of its 8% convertible subordinated notes due 2007 and 5.5% senior convertible notes due 2010.

The exchange offer ends at 5 p.m. ET on Oct. 1.

For each $1,000 principal amount of 8% notes, tendering holders will receive 74 common shares and 1.2 shares of series C convertible preferred stock.

For each $1,000 principal amount of 5.5% notes, tendering investors will receive 667 shares of common stock and one share of series C preferreds.

The preferreds will be convertible into common shares following stockholder approval and the filing of an amendment to the company's charter to increase the number of shares of authorized common stock. Each preferred share will convert into 1,461 shares of common stock.

Spacehab is also soliciting consents to amend the indenture of its 5.5% notes to eliminate substantially all of the restrictive covenants.

The company said that about 75% and 85.8% of the 8% notes and 5.5% notes, respectively, have committed to tender their notes in the exchange offer.

The exchange offer is conditioned on tenders of at least 75% of the 5.5% notes.

CapitalBridge is the information agent (877 746-3583).

Spacehab is a Webster, Texas, provider of space services.

© 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.