Kingsway extends C$7 million 9% convertibles to 2013, lowers coupon

Changes required approval from shareholders, Toronto Stock Exchange

By Angela McDaniels

Tacoma, Wash., Jan. 3 - Kingsway International Holdings Ltd. said it amended the C$7 million of outstanding 9% convertible redeemable debentures due Sept. 19, 2011 it issued in a private placement in September 2008, lowering the coupon to 1% and extending the maturity date to Sept. 19, 2013.

The conversion price was lowered to C$0.55 per share from C$0.80, according to a company news release. The new conversion price is equal to the company's closing share price on Nov. 26, which is when the shares last traded before Kingsway announced plans for the amendments on Dec. 8.

The amendments also allow the company to force conversion at the new lower conversion price if the 20-day volume-weighted average price of its shares exceeds C$1.10, reduced from C$1.60.

The company announced on Dec. 21 that it had received conditional approval from the Toronto Stock Exchange to make the amendments.

Kingsway, a financial services firm based in Hong Kong, said it wanted to strengthen its general working capital by reducing the interest rate on the convertibles in exchange for a reduction in the conversion price.

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