Printer Friendly

AVATAR ANNOUNCES REDEMPTION OF ITS 5 1/4 PERCENT CONVERTIBLE-PURCHASE SUBORDINATED DEBENTURES

 NEW YORK, June 4 /PRNewswire/ -- Avatar Holdings Inc. (NASDAQ: AVTR) announced that the company has called for the redemption of all of its outstanding 5 1/4 percent Convertible-Purchase Subordinated Debentures due May 1, 2007 at a redemption price of 100 percent of the principal amount plus accrued and unpaid interest since Jan. 15, 1993. The principal purposes of the redemption are to reduce the company's leverage and annual interest expense, improve its liquidity and increase its stockholders' equity.
 Each holder of 5 1/4 percent debentures has the right to convert his 5 1/4 percent debentures into shares of the company's common stock at the conversion price of $23 per share, provided that such holder, as required, pays to the company at the time of conversion, additional cash in an amount equal to the principal amount of the 5 1/4 percent debentures then being converted, for which such holder will receive an additional number of shares of common stock equal to the number issuable upon conversion.
 The last day for holders to convert their debentures is 5 p.m. New York City time on Tuesday, June 29, 1993. The redemption date will be Sunday, July 4, 1993. Holders who convert 5 1/4 percent debentures are not entitled to accrued interest on any 5 1/4 percent debentures converted.
 Each of Odyssey Partners, L.P., which owns $10,424,500 principal amount of 5 1.4 percent Debentures, and the Estate of Peter Sharp, which owns $10,464,000 principal amount of 5 1/4 percent debentures, has advised the company that all of the 5 1/4 percent Debentures presently owned by it will be converted. Accordingly, even if no other holder of 5 1/4 percent Debentures converts his 5 1/4 percent Debentures, the redemption will raise approximately $10,804,000 in cash for the company (less expenses) and result in the issuance of 1,816,391 additional shares of common stock. If all of the outstanding 5 1/4 percent Debentures are converted, the redemption will raise approximately $30,973,000 in cash for the company (less expenses) and result in the issuance of a maximum of 2,693,304 additional shares of common stock.
 The company will mail today to holders of 5 1/4 percent Debentures a Notice of Redemption, a prospectus relating to the common stock issuable upon the conversion of 5 1/4 percent Debentures and the related purchase of shares, and related materials.
 Avatar Holdings Inc. is a diversified holding company primarily engaged through its various subsidiaries, in real estate and utilities operations. Real estate activities include the development, marketing and sale of improved and unimproved property; construction and sale of shelter units; operation of amenities, resorts and cable television facilities in Avatar-developed communities; sale and management of timeshare unit weeks; shopping center construction and leasing; and residential and commercial property management services. Utility operations include the purification and distribution of water and the treatment and disposal of wastewater.
 This news release does not constitute either an offer to sell or a solicitation of an offer to buy these securities, which offer may be made only by Avatar's prospectus.
 -0- 6/4/93
 /CONTACT: Juanita I. Kerrigan, vice president and secretary of Avatar Holdings Inc., 305-442-7000, ext. 230/
 (AVTR)


CO: Avatar Holdings Inc. ST: New York, Florida IN: CST SU:

JB-SS -- FL005 -- 5464 06/04/93 13:03 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 4, 1993
Words:571
Previous Article:'BOAT SMART' -- BOAT GREEN
Next Article:YESTERDAY'S COUNTS SHOWED 25 PERCENT AVERAGE INCREASE IN TEAM RIDESHARE THURSDAY CARPOOLS
Topics:


Related Articles
QUANEX INTENDS TO CALL 9-1/8 PERCENT CONVERTIBLE DEBENTURES FOR REDEMPTION UPON COMPLETION OF PREVIOUSLY ANNOUNCED SECURITIES OFFERING
THERMO INSTRUMENT SYSTEMS INC. TO REDEEM CONVERTIBLE DEBENTURES
REDEMPTION OF ARVIN $3.75 CONVERTIBLE PREFERRED SHARES FOR 7 1/2 PERCENT CONVERTIBLE SUBORDINATED DEBENTURES DUE 2014
KIRBY CORPORATION ANNOUNCES REDEMPTION
STERLING SOFTWARE ANNOUNCES REDEMPTION OF 8 PERCENT CONVERTIBLE SENIOR SUBORDINATED DEBENTURES DUE 2001
AVATAR ANNOUNCES EXPIRATION OF RIGHT TO CONVERT 5 1/4 PERCENT CONVERTIBLE-PURCHASE SUBORDINATED DEBENTURES
WESTINGHOUSE TO REDEEM $41 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES
AVATAR HOLDINGS REPORTS RESULTS
NWNL TO REDEEM USLICO DEBENTURES
Pacific Gulf Properties Completes Call for Redemption of Outstanding Debentures Due 2001.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters