Kerzner sets merger conversion price for 2.375% convertibles, announces change of control tender

By Jennifer Chiou

New York, Aug. 23 - Kerzner International Ltd. fixed the price at which holders will be able to convert its 2.375% convertible senior subordinated notes due 2024.

The company said the announcement is linked to an agreement, under which it will merge with K-Two Subco Ltd. Kerzner said its shareholders will be entitled to receive $81.00 in cash per share.

The company added it will execute a supplemental indenture upon closing of the merger, expected to be on or about Aug. 30, to allow holders to redeem their notes at $1,390.79 in cash per $1,000 principal amount, without interest.

Holders will have until 11:59 p.m. ET on or about Sept. 29 to convert their notes.

Because the merger will be a change of control under the note indenture, holders may require Kerzner to buy back the notes at par plus accrued interest up to but excluding Sept. 14 repurchase date.

The change-of-control repurchase price, including accrued interest, will be $1,009.76 for each $1,000 principal amount.

The Bank of New York Trust Co., NA is the conversion agent and paying agent (904 998-4724).

Kerzner is a resort and hotel operator based in Plantation, Fla.

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