K2 holders take sweetener, convert all 7.25% convertibles

By Angela McDaniels

Seattle, Nov. 7 - K2 Inc. said all of its $25 million 7.25% subordinated convertible debentures due 2010 were converted into shares of K2 common stock after the company offered to issue an additional 54,487 shares of K2 common stock, including 13,278 shares for accrued interest, to holders who converted.

The notes were converted into 2,097,315 shares of K2 common stock on Nov. 6.

As a result of this conversion, K2 will incur a pre-tax, non-cash charge of $1.4 million in the fourth quarter. Consequently, the company predicted that GAAP diluted earnings per share will be between $0.71 and $0.74 for the full year.

K2 is a sporting goods company based in Carlsbad, Calif.

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