Alumina unit tenders for 2% convertibles that may be put back in 2011

By Susanna Moon

Chicago, Dec. 2 - Alumina Ltd. said that as part of its ongoing capital management strategy, Alumina Finance Ltd. is tendering for its $296 million of outstanding 2% guaranteed convertible bonds due May 16, 2013.

The company will pay par plus accrued interest.

The tender offer will expire at 10 a.m. ET on Dec. 15.

Bondholders may put the convertibles on May 16, 2011 at par plus accrued interest.

The repurchase of the bonds this year will bring forward the non-cash charge to the company's 2010 underlying earnings, representing the unwind of the discount in the liability, of up to $3 million, the company noted in a press release.

Alumina said on April 5, 2010 that its wholly owned subsidiary repurchased $50 million of the $350 million five-year 2% convertibles as part of the capital management strategy.

In August 2009, the convertibles saw their conversion price lowered to A$6.5668 from A$7.7613. The adjustment was due to a rights issue of about 980 million ordinary shares at A$1.00 per share.

The company's stock (Australia: AWC) closed at A$2.08 on Dec. 2.

Bank of New York Mellon is the tender agent.

Melbourne, Australia-based Alumina is involved in bauxite-mining activities.

© 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.