CP Ships' suspension of shelf registration causes convertible coupon to step up

New York, Aug. 16 - CP Ships Ltd.'s suspension of the shelf registration statement for its 4% convertible senior subordinated notes due 2024 caused the coupon to step up by 25 basis points on June 25.

The London-based container shipping company said the shelf was declared effective on April 26 but the company suspended it on May 11 in connection with its announcement that it would have to restate earnings.

Following completion of the relevant filings with the Securities and Exchange Commission, CP Ships plans to reactivate the shelf in "the next few weeks."

But it added that if the suspension continues through Sept. 23 then the coupon on the convertibles will step up a further 25 basis points to 4.5%.

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