Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers R > Headlines for Ryerson, Inc. > News item |
Holders may convert Ryerson's 3.5% convertible senior notes in fourth quarter
By Devika Patel
Knoxville, Tenn., Oct. 8 - Ryerson Inc. announced holders may convert its 3.5% convertible senior notes due 2024 during the fourth quarter.
The notes became convertible because the company's common stock exceeded 125% of the conversion price of $26.37 for 20 trading days out of the last 30 trading days of the third quarter. Ryerson's common stock price exceeded $26.71 for the 30 trading days ended Sept. 30, according to a company news release.
On conversion, the company will pay $1,000 in cash for each $1,000 principal amount of notes converted and will also pay a number of shares having a value equal to the amount that 46.7880 shares times the average closing stock price over the 10 trading days prior to the conversion exceeds $1,000.
Noteholders also have the right to convert their notes due to the merger between Ryerson and an affiliate of Platinum Equity LLC, which constitutes a "fundamental change" under the notes' indenture. Noteholders who convert because of this fundamental change will receive all of the above plus additional shares allowed under the indenture.
If the merger occurs on Oct. 19, each $1,000 principal amount of notes would be convertible into 1.1026 additional shares of Ryerson common stock. The number of additional shares to which holders of the notes will be entitled will decrease for each day after Oct.19 that the merger is delayed.
Ryerson is a Chicago-based distributor and processor of metals.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.