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Prospect News home > News index > List of issuers E > Headlines for EnPro Industries Inc. > News item |
EnPro's 3.9375% convertibles due 2015 are convertible through June 30
By Tali David
Minneapolis, April 1 - EnPro Industries, Inc. said that beginning April 1, its $172.5 million of 3.9375% convertible senior debentures due 2015 will be convertible by holders.
This conversion right was triggered because the closing price per share of EnPro's common stock exceeded $43.93, or 130% of the conversion price of $33.79, for at least 20 trading days during the 30 consecutive trading days ending on March 31.
EnPro's stock closed at $51.06 (NYSE: NPO) on March 28.
The debentures will continue to be convertible until June 30.
Upon conversion, $1,000 principal amount of each debenture will be settled in cash; to the extent the conversion value exceeds $1,000, the remaining amount due to the holders will be settled in shares of common stock.
At the time of the sale of the debentures, a portion of the proceeds was used to enter into call options that entitle the company to purchase shares from a financial institution at $33.79 per share and entitle the financial institution to purchase shares from the company at $46.78 per share.
These transactions reduce potential dilution to holders of the company's common stock from conversion of the debentures by increasing the effective conversion price to $46.78 a share.
U.S. Bank, NA is the trustee.
EnPro is a Charlotte, N.C.-based company that designs and manufactures engineered industrial products.
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