Alaska Air Group To Redeem Debentures.SEATTLE--(BUSINESS WIRE)--May 1, 1998--On the heels of record first quarter profits reported last week, Alaska Air Group, Inc. (NYSE NYSE See: New York Stock Exchange ) today announced it is calling for full redemption of approximately $126 million of its 6-1/2% Convertible Senior Debentures due 2005. "This is another great opportunity for both Alaska Air Group and the holders of these debentures to mutually benefit from the company's continuing strong performance," said Harry Lehr, senior vice president of finance. "This conversion, when added to the $54 million of debentures which were converted in February 1998 will substantially improve the company's balance sheet and leverage ratios." The redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. of the Debentures is June 15, 1998. The Debentures will be redeemed at 104.33% of the principal amount plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. through the redemption date to holders of record as of June 1, 1998. The Debentures called for redemption may be converted at the conversion price of $21.50 per share of Common Stock before the close of business of June 12, 1998. Holders electing to convert their Debentures will receive 46.51 shares of common stock per $1,000 principal amount at maturity. The Paying Agent Paying Agent An agent who accepts payments from the issuer of a security and then distributes the payments to the holders of the security. Also known as a "disbursing agent. and Conversion Agent is Harris Trust and Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , 311 West Monroe West Monroe, city (1990 pop. 14,096), Ouachita parish, N La., on the Ouachita River, opposite Monroe, in a forest and lake area; inc. 1851. Its chief industries are lumber and paper milling. , 11th Floor, Chicago, IL 60606. Alaska Air Group, Inc. is the holding company for Alaska Airlines, Inc. and Horizon Air Industries, Inc. CONTACT: Harry Lehr Jack Evans 206/431-7032 206/433-3134 |
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