Eaton Vance calls LYONs due 2031

By Laura Lutz

Des Moines, July 28 - Eaton Vance Management will redeem its Liquid Yield Option Notes due 2031 for cash on Aug. 14, according to a company release.

The company will pay $688.25 per $1,000 principal amount at maturity.

As of July 28, there were $110.945 million of the notes were outstanding.

Noteholders have the option of exchanging them for Eaton Vance Corp.'s non-voting common stock at a rate of 28.7314 shares of common stock per $1,000 principal amount. Holders can exchange the notes until 5 p.m. ET on Aug. 10.

If holders choose to exchange the notes, Eaton Vance will offer cash instead of common stock, at a rate based on the average sale price of the stock for the five consecutive trading days immediately following the exchange date.

The accreted value of the notes outstanding on July 28 is $76.3 million. If the exchange price is greater than $23.95, the company will recognize a charge to interest expense in its fiscal fourth quarter equal to the difference between the cash paid on exchange and the accreted value of the notes exchanged.

The company's stock (NYSE:EV) closed at $24.42 on July 27.

Eaton Vance Management is a subsidiary of Eaton Vance Corp., a Boston-based investment management firm.

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