Schuff pays $7.5 million to induce conversion of 7% convertibles

By Angela McDaniels

Tacoma, Wash., Nov. 5 - Schuff International, Inc. said the holders of its $30 million of 7% convertible subordinated notes due 2013 agreed to convert their holdings in exchange for a $7.5 million cash payment.

The notes will be converted at the conversion price of $12.00 per share, resulting in the issuance of 2.5 million shares of common stock.

Schuff stock closed at $17.50 (Pink Sheets: SHFK) on Thursday.

The retirement of the notes will save the company about $2.1 million in annual interest payments, according to a company news release.

The company also announced that it will pay a one-time dividend of $5.80 per share on Dec. 9 to stockholders of record as of the close of business on Nov. 24.

Schuff provides integrated steel construction services and is based in Phoenix.

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