Xstrata to convert remaining 3.95% convertibles on call date

By Angela McDaniels

Seattle, April 4 - Xstrata plc said it will convert the $110,000 of its 3.95% guaranteed convertible bonds due 2010 that remains outstanding into preference shares on April 16.

On March 15, the company's subsidiary, Xstrata Capital Corp. AVV, called the $600 million of bonds for redemption at par plus accrued interest on April 16.

Bondholders could elect to convert their bonds until April 2, and $110,000 of the bonds remained outstanding at the close of business on April 2.

The terms of the bonds allow the trustee to elect to convert the bonds if the net proceeds would likely exceed by 5% or more the total amount of principal and interest that would be payable on the redemption date, according to a company news release.

Xstrata is a mining company based in Zug, Switzerland.

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