| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for Tenders 2009 > News item |
China Security to repurchase $50 million convertibles at discount
By Jennifer Chiou
New York, Oct. 22 - China Security & Surveillance Technology, Inc. announced that it entered into a definitive agreement with Citadel Equity Fund Ltd. to repurchase its $50 million of tranche A zero-coupon guaranteed senior unsecured convertible notes due 2012 for $47.5 million in cash.
On Oct. 2, the company said it would use the net proceeds from a $58.5 million registered direct offering of stock to repay the notes.
On Sept. 2, the company restructured its two 1% guaranteed senior unsecured convertible notes due 2012 into two new tranches of notes: the tranche A zero-coupon guaranteed senior unsecured convertible notes and the tranche B zero-coupon guaranteed senior unsecured notes.
As already reported, the $50 million in tranche A notes mature on Sept. 2, 2012. The company will repay the principal in six consecutive semiannual installments, starting March 2, 2010, with 25%, 25% and 50% of the principal amount to be repaid in the first, second and third year, respectively.
The initial conversion price will be $10.00 per share, with periodic adjustments. The minimum conversion price allowed is $6.00 per share.
The $84 million in tranche B notes, which are not convertible, also mature on Sept. 2, 2012. The company will repay the principal amount in six consecutive semiannual installments, starting March 2, 2010, with 46%, 46% and 8% of the principal amount to be repaid in the first, second and third year, respectively.
The company may redeem the two tranches of notes at any time with no premium or penalty at par plus default interest, if any.
Located in Shenzhen, China, China Security provides security and surveillance products and 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.