Clarke set to redeem some 6% convertibles April 25, calls remainder

By Marisa Wong

Madison, Wis., April 22 - Clarke Inc. said it has decided to redeem the remaining amount of its 6% convertible subordinated debentures due Dec. 31, 2018.

As previously announced, Clarke will redeem C$12 million, or 49.6%, of the current outstanding balance of 6% convertible debentures on April 25. The debentures will be redeemed on a pro rata basis at par plus accrued interest to the redemption date, for a total redemption price of C$1,018.90 per C$1,000 principal amount.

The company said it will use available funds for the partial redemption.

Following the April 25 redemption, the amount of debentures outstanding will be C$12,214,300.

According to a press release on Tuesday, the company has about C$33 million of cash on hand and wants to redeem the remaining outstanding balance.

The remaining convertibles will be redeemed on May 22 at par plus accrued interest to the redemption date, for a total of C$1,023.34 per C$1,000 principal amount.

The debentures may be converted at any time prior to 5 p.m. ET on May 21 at a conversion price of about C$7.50 per share.

The company's stock (TSX Venture: CKI) closed at C$8.21 on Monday.

Based in Halifax, N.S., Clarke invests in private and publicly traded businesses.

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