Weatherford calls convertible debentures due 2020

By Jennifer Chiou

New York, July 28 - Weatherford International Ltd. announced it is redeeming all its zero-coupon convertible senior debentures due June 30, 2020.

The Houston company will redeem about $578 million aggregate redemption price of the securities on Aug. 29.

Debentureholders may convert their holdings into Weatherford shares prior to the redemption date.

On July 15, the company said it received puts of $11,041,000 principal amount at maturity of the debentures. The company repurchased the debentures on June 30 at $639.76 per $1,000 principal amount at maturity, the contractual repurchase price.

Weatherford intends to fund the upcoming redemption with cash on hand and borrowings under its revolving credit agreement.

The company, which provides equipment and services for drilling oil and natural gas wells, reported second quarter 2005 net income of $94.7 million or $0.64 per diluted share.

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