CapitalSource to exchange stock for its 1.25%, 1.625% convertibles

By Susanna Moon

Chicago, Oct. 24 - CapitalSource Inc. agreed to issue common shares in exchange for $45 million principal amount of its outstanding 1.25% and 1.625% senior and senior subordinated convertible debentures due 2034, according to an 8-K filing with the Securities and Exchange Commission.

CapitalSource said it entered into an agreement with one of its noteholders on Oct. 20.

The number of shares to be issued will be determined based on the volume-weighted average price of the company's common stock as reported on each of 10 consecutive trading days.

The company's stock (NYSE: CSE) closed at $6.79 on Oct. 23.

CapitalSource is a commercial lending, investment and asset management business based in Chevy Chase, Md.

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