MFC Bancorp calls convertibles

New York, Jan. 15 - MFC Bancorp Ltd. said it will redeem its 8% convertible subordinated bonds on Feb. 18.

The Vienna, Austria, financial services holding company will pay par plus accrued interest for the securities.

Up to 5 p.m. ET Feb. 10 holders can convert the bonds into stock at a price of $13.22 per share. MFC stock closed at $18.70 on Wednesday.

As of Jan. 13 there was $11.2 million principal and interest of the bonds outstanding.

MFC Bancorp originally issued the convertibles in March 1998.

"The outstanding convertible bonds have had a continuing dilutive effect on our earnings pre share, this fact coupled with the high interest rate and associated carrying cost has caused the company to exercise its right of redemption," said MFC Bancorp President Michael Smith in a news release.

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