Celanese redeems 8,724 shares of 4.25% convertible preferreds after holders convert 9.59 million

By Susanna Moon

Chicago, Feb. 26 - Celanese Corp. redeemed 8,724 shares of its 4.25% convertible perpetual preferred stock on Feb. 22 for 7,437 common shares, according to a 10-K filing with the Securities and Exchange Commission.

Holders of the preferreds were entitled to convert each share into 1.26 common shares by 5 p.m. ET on Feb. 19.

As of that date, holders elected to convert 9,591,276 preferreds into 12,084,942 common shares.

The company called the notes on Feb. 1 and said the redemption price would be $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 would be paid in shares of the company's series A common stock. Each preferred was to 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.

Celanese is a Dallas-based chemical company.

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