DST exchanges new convertibles for $190.4 million 4.125% convertibles

By Angela McDaniels

Tacoma, Wash., Oct. 1 - DST Systems, Inc. will issue new convertibles in exchange for $190.4 million principal amount of its 4.125% series A convertible senior debentures due 2023 under some privately negotiated exchange agreements, according to a company news release.

The holders will receive $190.4 million principal amount of new 4.125% series C convertible senior debentures due 2023.

The new debentures are convertible under certain circumstances into shares of DST common stock at an initial conversion rate of 20.3732 shares, which is equivalent to an initial conversion price of $49.08 per share. The company's stock closed at $44.80 (NYSE: DST) on Wednesday.

The existing debentures have the same conversion rate.

The new debentures are callable beginning Aug. 15, 2013 and have a put option on Aug. 15, 2014 and some subsequent dates.

The existing debentures are first callable and putable in 2010.

DST is a Kansas City, Mo.-based provider of information processing and software services.

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