BlackRock holders tender $47 million notes; remainder to be converted

By Susanna Moon

Chicago, Sept. 10 - BlackRock Latin American Investment Trust plc said investors tendered $47,003,000 of its outstanding $64 million convertible bonds in the offer announced on Aug. 23.

The purchase price will be $998.78 per $1,000 principal amount plus interest for six months up to but excluding Sept. 15.

After settlement on Sept. 16, $16,997,000 of the convertibles will remain outstanding, which is less than 25% nominal amount of the bonds originally issued.

This allows the company to force conversion of the bonds, and holders may then put their convertibles at par plus accrued interest up to but excluding the optional conversion date, according to a company press release.

The optional conversion date has not yet been determined.

As previously announced, the tender offer notice was sent to bondholders on Aug. 30, and tendered bonds will be canceled on Sept. 13.

BlackRock previously said that each of the directors who held bonds intended to participate in the tender offer in full.

Funding for the offer will be financed by a combination of a disposal of the company's fixed-interest holdings, cash on hand and use of the company's overdraft facility. If there is a shortfall in the funds required or the investment manager believes that a lower level of gearing is appropriate, cash will be raised via a disposal of equities, the previous release said.

BlackRock is an investment management firm based in New York.

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