Bowater to Redeem Convertible Preferred Stock.GREENVILLE, S.C.--(BUSINESS WIRE)--Dec. 16, 1996--Bowater Incorporated (NYSE NYSE See: New York Stock Exchange :BOW) today announced that it is calling for redemption on January 9, 1997, all of the outstanding shares (and related Depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. Shares) of its 7% PRIDES, Series B Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , par value $1 per share. The PRIDES will be redeemed using common stock at a conversion ratio of .82 of a common share for each Depositary Share. All of the approximately 4.9 million outstanding Depositary Shares will be redeemed for approximately 4.0 million Bowater common shares. Cash will be paid in lieu of fractional shares Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. fractional share Less than one share of stock, that is, one-third or one-half a share. . No dividends on the PRIDES will be paid or payable for the period from January 1 to January 9, 1997. Written notice of the specific terms of and instructions for the redemption are being mailed today to each holder by the Redemption Agent, SunTrust Bank. Since inception, the PRIDES have been counted as common stock equivalents on a one-for-one basis for purposes of the calculation of fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of ; therefore, conversion into common shares at a ratio of .82-for-one will be accretive to fully diluted earnings per share. In addition, the redemption of the PRIDES will reduce the company's aggregate dividends by approximately $1.2 million per quarter beginning in 1997. Bowater Incorporated, headquartered in Greenville, SC, is the largest producer of newsprint in the U.S., and also makes coated and uncoated groundwood papers, bleached kraft pulp and lumber products. It has five paper mills and 3.6 million acres of timberlands in the U.S. and Canada. Bowater Incorporated common stock is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , U.S. regional exchanges, the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. and the Swiss Stock Exchanges. CONTACT: Bowater Incorporated Media contact: Robert D. Leahy 864/282-9571 (Office) 864/234-0941 (Home) Analyst Contact: James H. Dorton 864/282-9500 (Office) 864/228-2805 (Home) |
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