Red Hat calls remaining 0.5% convertibles

By Angela McDaniels

Tacoma, Wash., Jan. 21 - Red Hat, Inc. will redeem its $535,000 outstanding 0.5% convertible senior debentures due Jan. 15, 2024 on Feb. 24, according to an 8-K filing with the Securities and Exchange Commission.

Holders will receive par plus accrued interest.

The convertibles may be converted into Red Hat common stock at any time prior to 5 p.m. ET on Feb. 23. The conversion rate is 39.0753 shares per $1,000 principal amount, which represents a conversion price of about $25.59 per share. Red Hat stock closed at $13.95 (NYSE: RHT) on Wednesday.

As previously reported, holders of $285 million of the convertibles exercised their Jan. 15 put option. The company paid par plus accrued interest and used cash on hand to fund the purchase.

Red Hat is an open-source software provider based in Raleigh, N.C.

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