Tri-S once more extends exchange offer for 10% convertibles

By Susanna Moon

Chicago, Nov. 5 - Tri-S Security Corp. extended until 5 p.m. ET on Nov. 13 the offer to exchange its 10% convertible promissory notes due 2008 for its 14% convertible promissory notes due 2010 plus warrants to purchase common stock.

The offer was pushed back from Nov. 5. It was originally set to expire on Sept. 18.

As of Nov. 5, more than 85% principal amount of notes has been tendered in the offer.

The company announced new terms on Oct. 20 in its exchange offer for the convertibles.

The company eliminated the option to receive common shares plus series A warrants for the existing notes.

Instead, it amended the new convertible promissory notes on offer, raising the coupon to 14% from 10%, shortening the term to two years from three years and cutting the conversion price to $1.75 per share from $3.30 per share.

Tri-S also reduced the exercise price of the warrants that are being offered with the new notes to the volume-weighted average price of its common stock for a five-day period prior to the expiration of the exchange. Previously the exercise price was $3.30.

Warrant coverage was cut to 18.23% from 50%.

In addition, Tri-S reduced the threshold for completing the exchange. It now requires that 85% of the existing notes be tendered, down from 95%.

Based in Alpharetta, Ga., Tri-S provides contract security guard services to U.S. government agencies.

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