Clarke to redeem all outstanding 5.5% convertible debentures due 2028

Chicago, June 28 – Clarke Inc. announced that it will redeem the entire $35 million outstanding 5.5% convertible subordinated debentures due Jan. 1, 2028 on July 28, according to a press release.

The debentures will be redeemed at 101.341 plus interest to the redemption date.

The debentures have been trading in Toronto under the symbol “CKI.DB.”

In connection with the redemption, Clarke entered into a related-party loan in the form of a revolver with interest at 6% and a maturity date on Jan. 1, 2028.

Tom Casey, chief financial officer of Clarke, said, "This is a positive result for the company and its shareholders as it provides greater certainty of capital beyond the current 2028 maturity date, and it simplifies the company's borrowings. It's also a positive outcome for the holders of debentures as their holdings will be redeemed at par compared to the discount at which they are currently trading."

Halifax, N.S.-based Clarke invests in private and publicly traded businesses.

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