The principal purposes of the offers are to (1) refinance the original series debentures
with new collateralized debt securities having a lower interest rate and a shorter maturity than the original series debentures
, and (2) repurchase the 1991 series debentures
and 1992 series debentures
, thereby reducing the company's aggregate outstanding leverage and annual interest expense.
Oakwood also announced that the transfer books for the debentures
being redeemed will be closed on Dec.
In connection with the redemption of the Debentures
, the Company has made arrangements with Montgomery Securities pursuant to which Montgomery Securities has agreed, subject to certain conditions, to purchase from the Company on the Redemption Date the number of shares of Common Stock which would have been issued on conversion of Debentures
not surrendered for conversion plus the number of shares necessary to provide funds to pay cash in lieu of fractional shares.
is convertible into common shares with conversion prices ranging between $0.
Braaten & Pether for investment purposes and, in the future, each of them may acquire or dispose of Debentures
or common shares from time to time.
If the first year of Debenture
interest is paid in common shares and the Debentures
are converted in the second year of the term (which is the maximum number of shares expected to be issued pursuant to the Debentures
, excluding the anti-dilution provisions applicable under certain restricted circumstances previously mentioned), a total of 270,234 further common shares would be issued, in addition to the 3,825,873 common shares which may be issued pursuant to the previously announced first issue of 10% Senior Secured Convertible Debentures
There can be no assurance regarding whether holders of the Debentures
will choose to convert their Debentures
into the Cash Conversion Payment or to put their Debentures
Icefloe will have the right to fully redeem the Debentures
any time prior to maturity for a cash payment in the amount of the principal plus accrued interest and a maturity premium in the amount of $6,250 (the "Maturity Premium") for each Debenture
98-10 involves the determination of whether the surrender of target debentures
in exchange for acquiring debentures
is subject to nonrecognition treatment if the acquiring and target corporations are both parties to the same reorganization under Sec.
CINCINNATI, April 18 /PRNewswire/ - American Financial Corporation (AFC) announced today that its recent Offer to issue 9-3/4% Debentures
due April 20, 2004, ("New Debentures
") in exchange for all of its issues of presently outstanding debentures
expired pursuant to its terms on Friday, April 15, 1994.
Interest on the convertible debentures
will accrue at a rate of 12% per year for the first year following the closing and 18% for the second year and will be payable in cash on the first anniversary of the closing date and on the maturity date.
The transaction described in the 1981 ruling involved a sale of debentures
outside the United States by a foreign subsidiary (FS).