Foster Wheeler exchanges 91% of 9% trust preferreds

New York, Aug. 1 - Foster Wheeler Ltd. said it has exchanged 2.6 million or 91% of its 2.85 million shares of 9% trust preferred securities.

The company issued 5.6 million new common shares at the rate of 2.16 shares for each trust preferred. Following the exchange, Foster Wheeler has 50.5 million common shares outstanding.

In addition, Foster Wheeler announced an additional period in which holders can exchange, running through 5 p.m. ET on Aug. 10.

The original exchange expired at 5 p.m. ET on July 29

Since the company announced the offer on June 30, Foster Wheeler said agreements have been reached with the holders of 1.39 million or 48.9% of the securities, committing them to tender in the exchange offer.

"I am very pleased with the results of this exchange offer, which is another successful step in our ongoing strategy to reduce leverage and therefore improve the relative competitive and financial position of Foster Wheeler," said Raymond J. Milchovich, chairman, president and chief executive officer of Foster Wheeler, in a news release.

The exchange reduced consolidated debt by $64.8 million, reduced annual interest expense by $8.7 million, improved net worth by $87 million and eliminated $25.9 million of deferred interest.

Clinton, N.J.-based Foster Wheeler is an engineering and construction firm specializing in energy and chemical facilities.

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