Stars Group to force conversion of all convertible preferreds

By Wendy Van Sickle

Columbus, Ohio, June 5 – Stars Group Inc. has elected to force the conversion of all of its outstanding convertible preferred shares, according to a press release.

The conversion right was triggered on May 30 when the common share price and trading volume requirements entitling the company to mandatorily convert the preferred shares into common shares were met.

The effective date of the mandatory conversion date will be the close of business on July 18.

All of the preferred shares outstanding will be converted at a rate of approximately 52.66 common shares per preferred share.

Based on the 1,138,978 preferred shares outstanding as of June 5 and assuming no voluntary conversions prior to the mandatory conversion date, the mandatory conversion would result in the issuance of approximately 59.98 million common shares.

The preferred shares were issued on Aug. 1, 2014 at a subscription price equal to C$24.00 per underlying common share in connection with the Stars Group’s acquisition of its Stars Interactive Group online gaming division. The conversion ratio has increased at a rate of 3% every six months since issuance, resulting in incremental common shares issuable to the holders upon conversion.

Stars Group is a Toronto-based provider of technology-based products and services in the gaming and interactive entertainment industries.

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