By Devika Patel
Knoxville, Tenn., Jan. 31 - Magellan Aerospace Corp. said it completed a C$20.95 million private placement of convertible unsecured subordinated debentures. The deal priced for C$35 million on Dec. 20.
The convertibles will mature on Jan. 31, 2010 and bear interest at 8.5% per year.
During the first six months, Magellan will be able to redeem the debentures for 102.5% of par. They will not be convertible during that time.
After the first six months, holders will be able to convert the debentures into common stock at C$2.00 per share.
N. Murray Edwards, who owns about 28% of Magellan's stock, bought C$17.5 million of the debentures.
Proceeds will be used to repay convertible debentures that were due on Thursday.
Toronto-based Magellan is a supplier for the aerospace industry.
| Issuer: | Magellan Aerospace Corp.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$20.95 million
|
| Maturity: | Jan. 31, 2010
|
| Coupon: | 8.5%
|
| Price: | Par
|
| Yield: | 8.5%
|
| Conversion price: | C$2.00
|
| Call: | At 102.5% of par, during first six months
|
| Investor: | N. Murray Edwards (for C$17.5 million)
|
| Announcement date: | Dec. 20
|
| Settlement date: | Jan. 31
|
| Stock symbol: | Toronto: MAL
|
| Stock price: | C$1.10 at close Dec. 19
|
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