Celanese calls all 9.6 million shares of 4.25% convertible preferreds

By Jennifer Chiou

New York, Feb. 1 - Celanese Corp. announced that it will redeem in full its 9.6 million outstanding shares of 4.25% convertible perpetual preferred stock on Feb. 22.

The redemption price is $25.06 per preferred share, which represents an amount equal to the liquidation preference of $25.00 per preferred, plus accrued dividends.

Celanese said that the redemption price will be paid in shares of the company's series A common stock. Each preferred will be redeemed for a number of common shares equal to the redemption price divided by 97.5% of the average closing stock price for the 10 trading days ending on the fifth trading day prior to the redemption date.

The company will pay cash in lieu of any fractional shares.

Holders may surrender their preferreds to the paying agent, Computershare Trust Co., NA (781 575-2000) prior to 10 a.m. ET on Feb. 22.

Celanese noted that holders may exercise their right to convert their securities prior to the redemption date at a conversion rate of 1.26 common shares per preferred.

The preferreds may be converted through 5 p.m. ET on Feb. 19. The company's shares closed at $29.10 apiece on Jan. 29.

Celanese is a Dallas-based chemical company.

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