Dixie to repurchase remaining $9.7 million 7% convertibles due 2012

By Toni Weeks

San Diego, Sept. 15 - Dixie Group, Inc. intends to repurchase the remaining $9,662,000 of its 7% convertible subordinated debentures due May 2012 with proceeds from the company's recently refinanced $90 million senior revolving credit facility and $11.1 million term loan, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The redemption will occur on Oct. 5. In lieu of redemption, holders of the securities have until 5 p.m. ET on Oct. 4 to convert their debentures into shares of the company's common stock at a conversion rate of 31.0559 shares of the company's common stock per $1,000 principal amount of debentures, equivalent to $3.00 per share. Dixie's stock (Nasdaq: DXYN) closed at $3.30 apiece on Sept. 15.

The redemption price will be par plus accrued interest of $0.1944 per day through Oct. 4.

U.S. Bank NA (212 361-4385) is the trustee and paying agent.

Dixie is a Chattanooga, Tenn.-based manufacturer, marketer and seller of carpets and rugs to residential and commercial customers.

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