Kaman offers to repurchase or convert 3.25% convertibles due 2024

By Rebecca Melvin

New York, Aug. 29 – Kaman Corp. announced that holders of its $200 million of 3.25% convertible senior notes due 2024 may put their notes from Thursday though 11:59 p.m. ET on Sept. 26, according to a company news release.

The company will repurchase all notes that have been validly surrendered for 100% of the principal amount plus accrued and unpaid interest.

Alternatively, holders may under the note’s indenture elect to convert their notes into shares of Kaman common stock. The notes are convertible until Sept. 27.

The offer to repurchase relates to the previously announced share purchase agreement among Kaman, LJ KIT Blocker, Inc., LJ KAI Blocker, Inc. and LJ KFP Blocker, Inc. for the company. The closing of this transaction occurred on Aug. 26.

The fundamental change repurchase price will be paid by D.F. King & Co., Inc., as depository agent following deposit by the company prior to 11 a.m. ET on the Sept. 26 repurchase date.

The notes that holders elect to convert will be changed into shares, cash or a combination of cash and shares at the company’s election, reflecting a conversion rate of 18.0709 shares per $1,000 principal amount of notes.

The company said its offer contains a comparison of the amount holders would receive if their notes are converted and presented to U.S. Bank NA, as conversion agent, and settled for cash, and the amount holders will receive if their notes are repurchased through exercise of the fundamental change repurchase right.

Based in Bloomfield, Conn., Kaman makes proprietary aircraft bearings and components.

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