EDO 4% notes convertible only into cash following acquisition

By Jennifer Chiou

New York, Dec. 26 - EDO Corp. entered into a second supplemental indenture for its 4% convertible senior subordinated notes due 2025 stating that the notes are convertible solely into cash following the company's merger, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into the supplemental indenture with trustee HSBC Bank USA, NA.

On Dec. 20, ITT Corp. completed its $56.00-per-share acquisition of EDO in a transaction valued at $1.7 billion.

For each $1,000 principal amount, the notes are convertible into $1,680.36 in cash if the conversion occurs during the make-whole period, which runs from Nov. 9 until 45 days after notice of completion of the merger.

After the make-whole period, the conversion price will be $1,637.96 for each $1,000 principal amount.

New York-based EDO designs and manufactures products for aerospace, defense, intelligence and commercial markets. ITT is an engineered products manufacturer located in White Plains, N.Y.

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