By Jennifer Chiou
New York, Feb. 12 - Belvedere SA announced that it is preparing an offer for creditors under its plan of reorganization in which the company would issue bonds convertible into shares of the company.
Creditors will have until April 30 to convert their debt into the planned convertible bonds.
The offer is part of Belvedere's efforts to find a satisfactory solution for shareholders and creditors as well as a way to reduce its debt burden, according to a company news release.
The 1% bonds will be issued at par of 123.75 apiece and will mature in five years.
Each bond will be convertible into one Belvedere share under the following conditions:
As soon as the company's share price exceed 41.25 per share, bondholders will be able to convert one-third of their securities into shares;
When Belvedere's shares are worth 82.50 apiece, the convertibles bearers will be able to convert the second third of the bonds into shares; and
At the point the shares exceed 123.75 each, holders will be able to convert the final third of the securities into shares.
The company's shares closed at 32.40 on Feb. 12.
Furthermore, the company said it will reserve the right during the life of these bonds to reimburse bearers in cash, in whole or in part, for their holdings at a price equal to their nominal value plus accrued interest.
"We hope we can create a win-win agreement for the group, our shareholders and our creditors," chief executive officer Jacques Rouvroy said in the release.
"When our debt has been significantly reduced, we will be able to peacefully work out the conditions for a pool of strategic investors to come on board."
On Feb. 8, the company said it received approval from more than 90% of its shareholders for the proposed amendments to its share purchase warrants dated 2004 and 2006.
The company also previously noted that it took into account a notice from l'Autorit้ des march้s financiers from Jan. 29 to exclude the votes of directors of the company. That said, votes associated with Jacques Rouvroy and Christophe Trylinski were excluded from the quorum of holders.
This follows the Nov. 10 approval of the company's plans of reorganization in the Court of Dijon.
Belvedere previously said that holders representing about 100 million of its Obsars had unanimously approved the plan.
Based in Beaune, France, Belvedere is a producer and distributor of alcoholic and non-alcoholic beverages.
Issuer: | Belvedere SA
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Issue: | Convertible bonds
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Maturity: | Five years
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Coupon: | 1%
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Price: | Par of 123.75
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Conversion: | First third of bonds convertible once shares reach 41.25 apiece, second third when shares are at 82.50 each and final third when shares reach 123.75 each; one-for-one basis
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Announcement date: | Feb. 12
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Stock price: | 32.40 at close Feb. 12
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