Magellan Aerospace receives tenders for all 8.5% convertibles

By Jennifer Chiou

New York, May 21 - Magellan Aerospace Corp. said it obtained tenders for all debentures in the change-of-control tender offer for its C$20.95 million of 8.5% convertible unsecured debentures due Jan. 31, 2010.

The offer began on April 30. It wrapped at noon ET on May 21.

The Toronto-based company offered 102.5% of par plus accrued interest, for a total cash consideration of C$21,921,142, including C$447,392 for interest.

Of the convertibles, C$17.5 million was previously held by its chairman Murray Edwards and C$650,000 by Larry Moeller, a director.

If less than 10% of the convertibles had been remaining after the tender, Magellan Aerospace would have redeemed the remainder.

The offer was required as a result of the purchase by Edwards of C$40 million of new 10% convertible secured subordinated debentures, the extension, expansion and restatement of a C$65 million loan from a company owned by Edwards to Magellan and a credit facility amendment.

Magellan Aerospace designs, engineers and manufactures aeroengine and aerostructure assemblies and components for aerospace markets, advanced products for military and space markets and complementary specialty products.

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