Chartwell RetirementResidences said April 8 that it will issue a notice of redemption toholders of its 5.7% convertible unsecured subordinated debentures due March 31,2018, on April 12, representing a redemption in full of all of the currently outstandingseries 2012-1 debentures.
The debentures will be redeemed May 16 at a total redemptionprice of C$1,000 plus accrued and unpaid interest of C$7.0082 up to but excludingthe redemption date. Holders have until 4:00 p.m. on the last business day priorto May 16 to convert their debentures into units at a conversion price of C$11 perunit at a rate of 90.9091 units per $1,000 principal amount of notes. Based on theconversion price, Chartwell expects holders will convert their debentures by theconversion deadline.
The company plans to issue units to satisfy the redemption pricefor any unconverted debentures in an amount obtained by dividing the aggregate principalamount of debentures by 95% of the current market price of the units on the redemptiondate. The accrued and unpaid interest on such unconverted debentures will be paidin cash.
There was an aggregate C$134.6 million of the debentures outstandingas of the closing of trading April 7.