Corning Incorporated informed 9 November 2005 that it will redeem for cash the USD 13 million in remaining outstanding zero coupon convertible debentures due 8 November 2015 on the redemption date of …
Corning Incorporated informed 9 November 2005 that it will redeem for cash the USD 13 million in remaining outstanding zero coupon convertible debentures due 8 November 2015 on the redemption date of 25 November 2005. Vice chairman and chief financial officer Jim Flaws said: “Redemption of these zero coupon convertible debentures will mark completion of our balance sheet restructuring program goal to reduce the company“s total debt to below USD 2 billion”, and noted that the cash redemption and any conversions into common stock will not impact the firm“s 4Q guidance issued on 26 October 2005. Upon holders“ election, Corning repurchased an aggregate principal amount of USD 324 million of debentures for a cash payment of USD 266 million on 8 November 2005. As provided in the indenture, the redemption price is equal to the initial public offering price plus accrued original issue discount through the redemption date, or USD 820.315 per USD 1,000 principal amount per convertible debenture. The cash payment required to complete the redemption is USD 11 million. Holders retain the right to convert their convertible debentures into Corning common stock at any time before the close of business on 23 November 2005, the business day immediately before the redemption date. The debentures are convertible into 8.3304 shares of Corning common stock for each USD 1,000 principal amount. Delivery of common stock upon conversion is deemed payment in full, and no adjustment will be made to account for accrued original issue discount on debentures surrendered for conversion. A notice of redemption is being sent to all currently registered holders of the convertible debentures by the trustee for these debentures, JPMorgan Chase Bank, NA.