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Remy International to issue common shares in exchange for preferreds
By Susanna Moon
Chicago, Sept. 29 - Remy International, Inc. said it is offering to exchange newly issued common shares for outstanding shares of its series A preferred stock and series B preferred stock.
The company also is seeking consents to amend the certificate of designation for both series of preferreds.
Each preferred will be exchanged for common stock in an amount equal to the liquidation preference of $1,000 per preferred plus accrued dividends up through the settlement date, which is expected to be Oct. 29.
The newly issued shares are valued at $9.00 each. If all preferreds are exchanged on the settlement date, Remy said it will issue 18,016,824 new common shares, or 207.09 common shares for each preferred.
Before beginning the exchange offer, Remy said it entered into an agreement with two of its preferred holders, Ore Hill Hub Fund Ltd. and Fidelity National Special Opportunities Inc., which represent about 84% of the outstanding preferreds, to exchange their preferreds for common shares under the terms of the offer.
The holders also agreed to amend the preferreds to make them callable after Dec. 1 under the terms of the consent solicitation.
The offer requires approval by consent of two-thirds of the company's stockholders, which will be solicited through a shareholder consent, which will also amend the company's restated certificate of incorporation.
Phoenix Advisory Partners (800 576-4314) is the information agent.
Remy International is a Pendleton, Ind.-based manufacturer, remanufacturer and distributor of light duty starters and alternators and Delco Remy brand heavy-duty systems.
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