C&D holders give green light to 5.25%, 5.5% convertibles exchange; 97.99% of notes tendered

By Jennifer Chiou

New York, Dec. 20 - C&D Technologies, Inc. announced that its stockholders approved the exchange offers covering its 5.25% convertible senior notes due 2025 and its 5.5% senior notes due 2026.

As of 5 p.m. ET on Monday, the offer deadline, holders had tendered 97.99% of the securities.

Holders also authorized corresponding amendments to the company's certificate of incorporation at the Monday meeting.

C&D offered up to 95% of its common stock in exchange for the convertibles.

On Nov. 1, the company said it elected not to make a semiannual interest payment due on that date for the 5.25% notes in light of its plan to implement a debt restructuring exchange offer. It added at the time that it expected to also forgo the interest payment on the 5.5% notes.

The offer was conditioned on, among other things, at least 95% of the notes being tendered. If all other conditions are satisfied, tendering holders will receive their pro rata share of 95% of C&D's issued and outstanding shares.

If the restructuring is not completed through the exchange offer, the company said it would make a pre-packaged Chapter 11 bankruptcy filing.

C&D Technologies is a Blue Bell, Pa.-based engineer, manufacturer and seller of reserve power systems for regulating and monitoring power flow and providing backup power.

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