RPM completes redemption of 2.25% convertible notes due 2020

Chicago, Nov. 27 – RPM International Inc. redeemed the last $446,000 of its 2.25% convertible senior notes due 2020 on Tuesday after holders converted $204,554,000 of the notes.

To settle the conversions, RPM paid approximately $204,625,000 in cash, including cash in lieu of fractional shares, and issued 598,601 shares of its common stock, according to a press release.

RPM redeemed the remaining $446,000 of outstanding notes for a total of about $450,000, including accrued and unpaid interest up to, but excluding, the redemption date.

The company gave notice of the redemption on Sept. 25, and the notes were convertible until the close of business on Nov. 26.

“As a result of our recent stock price performance, we met the criteria to redeem these bonds early. By utilizing mostly cash to settle the conversions, we are pleased that, from a diluted EPS perspective, approximately 3.3 million shares are removed from our EPS calculation,” Frank C. Sullivan, chairman and chief executive officer, said in the release.

“Additionally, the redemption and resulting conversions are neutral to our current debt metrics.”

RPM is a Medina, Ohio-based company that manufactures and markets specialty chemical products for industrial and consumer markets.

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