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Trans-Lux launches exchange offer for $9 million of 8¼% convertibles
By Laura Lutz
Des Moines, Feb. 14 - Trans-Lux Corp. announced an exchange offer for up to $9 million principal amount of its 8¼% limited convertible senior subordinated notes due 2012, of which $17.958 million principal amount are outstanding.
The company is offering to exchange 133 common shares for each $1,000 principal amount of 8¼% notes, which is equivalent to a $7.52 per share conversion price.
The offer will expire at 5 p.m. ET on March 15.
The notes are currently convertible into 111.11 shares at $9.00 each through March 1. The company's stock (Amex: TLX) closed at $8.81 on Wednesday.
Holders who tender notes will still receive the regularly scheduled interest payment on March 1, but no interest will accrue after Feb. 28 on tendered notes.
The company believes that by making this exchange offer at a price below the current conversion price, it may be able to eliminate long-term debt and interest payments and strengthen its balance sheet, according to a news release.
Trans-Lux is a Norwalk, Conn.-based manufacturer of electronic displays.
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