EGL says almost all notes converted to stock ahead of call

New York, Dec. 21 - EGL Inc. said that virtually all its 5% convertible subordinated notes due 2006 were converted to stock ahead of the call.

The Houston transportation and supply chain management company issued 5.7 million shares of stock in response to conversions.

Through the redemption, EGL has eliminated "substantially all" its long-term debt, the company said in a news release.

EGL announced the redemption of its $100 million of outstanding 5% convertibles on Nov. 30, saying it would pay 101.25% of par plus interest accrued up to but excluding the redemption date.

Holders could convert their notes into shares of EGL Inc. common stock at a conversion price of $17.43 per share, or 57.3608 shares per $1,000 principal amount of notes.

The company said it expects to fund the redemption with borrowings under its $150 million unsecured revolving credit facility.

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