Meridian Bioscience starts exchange for 7% convertibles

New York, Nov. 12 - Meridian Bioscience Inc. said it has begun its previously reported exchange for $16 million of its 7% convertible subordinated debentures due 2006.

The Cincinnati maker of diagnostic products for infectious diseases is offering an equal principal amount of new 5% convertible subordinated debentures due Sept. 1, 2013 for the existing 7% convertibles.

The new securities have a lower conversion price of $14.50 per share compared to $16.09 on the existing debentures.

The new debentures will be callable from Sept. 1, 2004 onward at 103, declining to par on Sept. 1, 2007. The existing securities became callable on Sept. 1, 2003 at par.

Meridian currently has $20 million of the 7% convertibles outstanding.

There is no minimum for the exchange to be completed. Officers and directors of the company who hold 7% convertibles have indicated they will tender their securities, Meridian said.

Assuming the company is able to exchange $16 million of the existing convertibles, it will start redeeming the remaining $4 million for cash at par once the exchange is complete. If less than $16 million is exchanged, some or all will remain outstanding.

The exchange will extend the maturity of the convertibles by seven years, reduce the number of shares that will be used to 1.103 million from 1.243 million and reduce annual interest expense by $500,000.

The exchange runs through midnight ET on Dec. 11 unless extended.

D.F. King & Co. Inc. is the information agent, and LaSalle Bank NA is the exchange agent.

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