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Thermo Electron to redeem 4½%, 4 7/8% convertibles, adds $100 million to buyback program
New York, Sept. 12 - Thermo Electron Corp. said it will redeem all its outstanding 4½% convertible subordinated debentures due 2003 and all its outstanding 4 7/8% convertible subordinated debentures due 2004. It also added a further $100 million to its securities buyback program.
The 4½% debentures were originally issued by Thermo Instrument Systems Inc. and the 4 7/8% debentures were originally issued by Thermo Ecotek Corp. Thermo Electron assumed the debt in its mergers with Thermo Instrument Systems and Thermo Ecotek in June 2000 and August 2000 respectively.
There are currently $121 million of the 4½% convertibles outstanding and $13 million of the 4 7/8s.
The Waltham, Mass. instruments company said both series will be redeemed at par plus accrued interest on Oct. 18.
Holders may convert the securities up until the close of business on Oct. 3.
The 4½% securities convert at $34.42 per share and the 4 7/8s at $32.50 per share. Thermo Electron stock closed at $17.45 on Wednesday.
Thermo Electron also added a further $100 million to its repurchase program. The authorization from its board of directors covers the company's debt and equity securities and runs through Sept. 11, 2003. Repurchases may be in the open market or privately negotiated.
The previous repurchase program has been "substantially depleted," Thermo Electron said.
Thermo Electron's directors have authorized a series of repurchase blocks over the past year.
On May 16 the company added $100 million at which point $45 million was remaining on the previous $100 million authorization, announced on March 6. It follows a further $100 million announced in December and $100 million announced in November.
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