Maverick Tube exchanges 96.2% of 4% convertibles

New York, Dec. 31 - Maverick Tube Corp. said it has completed its exchange offer for its $120 million principal amount of 4% convertible senior subordinated notes due 2033, receiving tenders of $115.457 million or 96.2% of the notes.

As announced on Dec. 1, the company was offering new convertibles that will be identical to the old securities except they will have net share settlement and public acquirer change-of-control provisions.

On conversion, Maverick will pay up to the principal amount in cash and the remainder in stock.

On a change of control by a public company the notes will become convertible into the common stock of the acquirer.

Maverick Tube will pay an exchange fee of $2.50 per $1,000 principal amount of notes exchanged.

The St. Louis-based manufacturer of tubular products for the energy industry said it is carrying out the exchange in response to the decision by the Emerging Issues Task Force of the Financial Accounting Standards Board that companies must account for diluted earnings per share by including contingent convertible notes as if the notes were converted to common shares at the time of issuance. The company currently includes these potential shares only when the conversion triggers are reached.

The exchange expired at midnight ET on Dec. 29.

D.F. King & Co. Inc. is the information agent (800 735-3591, banks and brokers call 212 269-5550). J.P. Morgan Securities Inc. is the dealer manager.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.