US-based space technology manufacturer GenCorp has announced a put option on its 4.0625% convertible subordinated debentures, due 2039.
GenCorp has launched a tender offer for the outstanding US$133.64m debentures. It will pay 100% of the repurchase…
US-based space technology manufacturer GenCorp has announced a put option on its 4.0625% convertible subordinated debentures, due 2039.
GenCorp has launched a tender offer for the outstanding US$133.64m debentures. It will pay 100% of the repurchase price in shares of common stock.
The offer ends 30 December 2014 and the number of shares issued will be dependent on the number of debentures tendered and the company’s stock price at that time.
The company originally issued US$200m of the debentures in December 2009 in a private placement. Under the terms of the debt, each holder may convert their debentures into common shares at a conversion rate of 111.0926 shares per US$1,000 principal amount, representing a conversion price of around US$9.00 per share.
The debentures have put options on 31 December 2014, 2019, 2024, 2029 and 2034 with GenCorp deciding on whether to repurchase the debt in cash, shares or a mix.
As of 31 May 2014 GenCorp had 56.8 million shares issued and outstanding.