Trinity Industries 3.785% convertibles holders convert $448.5 million

By Wendy Van Sickle

Columbus, Ohio, June 1 – Trinity Industries, Inc. redeemed the remaining $800,000 of its 3.785% convertible subordinated notes due 2036 on Friday, according to an 8-K filing with the Securities and Exchange Commission.

Holders of about $448.5 million of the notes had submitted notices to convert their notes by the conversion deadline, 5 p.m. ET on May 30.

Trinity announced on April 23 that it would redeem on June 1 at par plus accrued interest any of the $449.4 million of the convertibles for which holders did not exercise their conversion right.

The conversion rate is 41.439 shares per $1,000 principal amount of the notes. The company said it will make the entire conversion payment in cash, with conversions being settled on various dates between May 30 and July 3.

The company’s stock (NYSE: TRN) closed at $31.60 on April 23.

Wells Fargo Bank, NA is the trustee.

Trinity said it expects to fund the redemption and conversion payments through a combination of cash on hand and the proceeds from one or more debt financing transactions on a non-recourse basis.

Trinity is a Dallas-based manufacturer of transportation, construction and industrial products.

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