Latecoere Group to redeem €42.9 million of convertibles due 2015

By Marisa Wong

Madison, Wis., Dec. 22 - Groupe Latecoere announced the early redemption of €42.9 million, or 60%, of its convertible bonds due July 30, 2015.

Following the early redemption, the total number of bonds will be reduced to 2.86 million from 7.15 million.

The remaining 2.86 million convertible bonds may be called at par beginning Jan. 2 until Jan. 31, 2015 in three annual tranches, if the average closing price of Latecoere stock over three consecutive trading days in a 20-day trading period is greater than €13, or 130% of the face amount of each bond.

The company also announced that holders approved at a meeting on Wednesday the acceleration of the conversion period for the remaining bonds to Jan. 2. The bonds are convertible until the maturity date at par.

The early redemption is part of the company's refinancing efforts. The reduced number of bonds reduces the maximum potential dilution of Latecoere shareholders to 18% from 26%.

Latecoere is an aircraft company based in Toulouse, France.

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