Cameco calls all 5% convertible debentures

By Jennifer Chiou

New York, Aug. 14 - Cameco Corp. announced the redemption of all C$229 million of its 5% convertible subordinated debentures due Oct. 1, 2013.

The redemption date is Oct. 1.

The company said it will pay par plus accrued interest.

Cameco added that it will pay the principal amount of the debentures in common shares by issuing a total number of shares equal to the principal amount divided by 95% of the current market price of the shares on Oct. 1.

Holders may convert their debentures into common shares until the close of business on Sept. 30. The debentures may be converted into a total of 21.1 million common shares at a conversion price of C$10.83 per share.

Cameco shares closed at $30.99 apiece on Aug. 13. At current share prices, the company said it expects existing holders to exercise this right.

The Saskatoon, Sask. uranium supplier originally sold C$200 million of the convertibles on Sept. 9, 2003 to yield 5% with a 34.7% initial conversion premium.

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