Coeur d'Alene Mines announces redemption of its 7% convertible subordinated debentures due 2002.COEUR d'ALENE Coeur d'Alene, city, United States Coeur d'Alene (kûrdəlān`), city (1990 pop. 24,563), seat of Kootenai co., N Idaho, near the Wash. line; inc. 1907. , Idaho--(BUSINESS WIRE)--Nov. 14, 1995--Coeur d'Alene Mines Corp. (NYSE NYSE See: New York Stock Exchange :CDE (1) (Computer Desktop Encyclopedia) What you are reading at this very moment. See About this product. (2) (Common Desktop Environment) A user interface for desktop computing from The Open Group. ) announced that effective Dec. 15, 1995, it will redeem the $74,957,000 principal amount of its outstanding 7% convertible subordinated debentures due 2002. The 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. will be $1,070 for each $1,000 principal amount of debentures. Debentureholders have the option of converting the debentures, prior to the close of business on Dec. 14, into shares of the company's common stock at a conversion price of $15.41 per share. Converting debentureholders will receive approximately 64.9 shares of common stock for each $1,000 principal amount, with cash payable in lieu of any fractional shares. Based upon the closing sale price of the common stock 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. on Nov. 14, 1995 of $18.50 per share, converting debentureholders would receive common stock having a value of $1,220.65 per $1,000 principal amount of debentures. In addition, holders of debentures at the close of business on Nov. 30, 1995, including those who convert their debentures into common stock between the close of business on Nov. 30 and the close of business on Dec. 14, will be entitled to receive the $35 semi-annual interest payment for each $1,000 principal amount payable on Dec. 15. The company has entered into a standby agreement Standby agreement In a rights issue, agreement that the underwriter will purchase any stock not purchased by investors. with UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Securities Inc. whereby that firm will purchase from the company the number of shares of common stock that would have been issued upon conversion of those debentures that have not been surrendered for conversion prior to Dec. 15, 1995. This arrangement assures Coeur that the entire principal amount of the outstanding debenture indebtedness will be converted into equity. The transaction will result in Coeur issuing approximately 4.9 million new common shares, increasing its common shares outstanding to approximately 20.5 million. "The redemption of the 7% debentures will have the positive impact of reducing our annual interest expense by $5.2 million," said Dennis E. Wheeler, chairman, president and chief executive officer of Coeur. "It will be an important step in increasing value for our common shareholders." CONTACT: Coeur d'Alene Mines Corp. Anthony R. Ebersole, 208/667-3511 |
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