Industrea secures buyback with holders for A$17.8 million convertibles

By Susanna Moon

Chicago, March 25 - Industrea Ltd. said it bought back A$17.8 million principal amount of convertible bonds with cash reserves.

The convertible bond balance has now been reduced to A$52.2 million following the buyback and conversion of A$5 million of convertible bonds to equity in November.

Industrea issued A$75 million of the convertibles in February 2008 as part of the funding for the acquisition of the Huddy's Mining Services business, according to a press release.

The remaining bonds are convertible into stock at a conversion price of A$0.39 per share and are redeemable on March 28, 2011.

The company's stock closed at A$0.39 (Australia: IDL) on March 25.

Solid operating cash flow from the company's diversified businesses had given the company the opportunity to cancel A$17.8 million of convertibles after negotiating with bondholders, Industrea managing director and CEO Robin Levison said in the release.

The buyback follows the company's A$164 million-plus new contracts secured over the past year in international and domestic markets and market guidance for increased revenue and profit in the full year, according to the press release.

Industrea is a mining products and services provider based in Brisbane, Australia.

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