Devon Energy calls 0% convertibles

New York, May 3 - Devon Energy Corp. said it will redeem all its zero-coupon convertible debentures due June 2020 on June 27.

The Oklahoma City-based independent energy company will pay $562.32 per $1,000 principal amount at maturity, equivalent to the issue price plus accrued interest.

Up to June 24, holders can convert the securities into stock at a price of $48.82 per share. Devon stock closed at $44.97 Tuesday.

Devon currently has $760 million principal amount at maturity of the convertibles outstanding, equivalent to $427 million accreted value.

"Having more than $2 billion of cash available enables us to call these debentures at the earliest possible date," said Brian J. Jennings, Devon's senior vice president and chief financial officer, in a news release. "We also plan to retire about $500 million of additional 2005 debt maturing later in the year."

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