American Retirement Corporation Announces Call of $4.5 Million of Its 10% Series B Convertible Senior Subordinated Notes.Business Editors NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 12, 2004 American Retirement Corporation (NYSE NYSE See: New York Stock Exchange :ACR See riser card. ), a leading provider of senior living housing and care, today announced that it was electing to redeem $4.5 million in principal amount of its 10% Series B Convertible Senior Subordinated Notes Due 2008. The Notes selected by the Trustee will be redeemed on March 12, 2004 at a Redemption Price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. of 105.0% (expressed as a percentage of principal amount), plus accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. but unpaid interest to 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. . According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the terms of the Notes, the Notes may be converted into shares of the Company's Common Stock at a conversion price of $2.25 per share. The right to convert the Notes selected for redemption will terminate and be lost at the close of business on March 12, 2004. As of February 11, 2004, there were $9.2 million principal amount of the Notes outstanding - with $6.7 million of the original $15.9 million having previously been converted, bringing the number of outstanding shares to 20.4 million. The closing price of the Company's Common Stock on February 11, 2004 was $5.19 per share. "We have already experienced $6.7 million of conversions of the 10% Series B Notes to equity in the last nine months. Based on the current stock price, management believes that this conversion presents a good opportunity to our noteholders to exercise their conversion right prior to redemption. The anticipated conversions will not only build equity, but they will also reduce our cost of capital and leverage. The conversions, which will benefit the company and its shareholders, exemplify ex·em·pli·fy tr.v. ex·em·pli·fied, ex·em·pli·fy·ing, ex·em·pli·fies 1. a. To illustrate by example: exemplify an argument. b. the company's ongoing strategy of improving its capital position," said Bryan Richardson, Executive Vice President and Chief Financial Officer. COMPANY PROFILE American Retirement Corporation is a national senior living and health care services provider offering a broad range of care and services to seniors. Established in 1978, the Company is a leader in the operations and management of senior living communities, including independent living communities, continuing care continuing care a professional convention that a veterinarian who is treating an animal is obliged to continue treating that case unless an arrangement is made with its custodian to transfer the care to another practitioner or to a specialist. retirement communities, Free-standing AL's, and the development of specialized care programs for residents with Alzheimer's and other forms of dementia. The Company currently operates 66 senior living communities in 14 states, with an aggregate unit capacity of approximately 13,000 units and resident capacity of approximately 14,600. The Company owns 19 communities, leases 41 communities, and manages six communities pursuant to management agreements. The Company's portfolio ended December 31, 2003 at 92% occupancy. |
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