CP Ships accepts tenders for $198.9 million 4% convertibles

By Jennifer Chiou

New York, Dec. 19 - CP Ships Ltd. announced it received tenders for $198.9 million or 99% of its $200 million of 4% senior subordinated convertible notes due 2024.

The company's offer was launched on Nov. 7 and expired at 5 p.m. ET on Dec. 14.

The company will pay cash equal to 100% of the principal amount, plus accrued interest up to but excluding the date of purchase.

CP Ships, which will retire the notes, said it was required to offer to purchase the convertibles as a result of the acquisition of 88.97% of its common shares by TUI AG.

The company also said it received the required consents from convertible noteholders to amend the notes' indenture, eliminating reporting obligations and events of default.

CP Ships will pay consenting convertible noteholders $2.50 for each $1,000 principal amount.

The consent solicitation expired at 5 p.m. ET on Dec. 16.

For the notes, which became convertible into shares of CP Ships on Dec. 5, the company said it intends to redeem special shares issued on conversion for $21.50 per share.

The conversion rate was 39.6542 shares per $1,000 aggregate principal amount of convertible notes, subject to adjustment. CP Ships had said it has the option to deliver cash in lieu of shares issuable upon any conversion of the notes.

CP Ships, a subsidiary of TUI AG, provides international container transportation and is based in Gatwick, England.

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