Aiken, S.C.-based Security Federal Corp. on Jan. 2 gave a notice of redemption to the holders of its 8.0% convertible senior debentures due 2029.
The company intends to fully redeem $6.0 million of the issued and outstanding debentures March 2.
The redemption price is equal to 100% of the principal amount of the debentures plus the accrued and unpaid interest thereon from Dec. 1, 2019, through but excluding March 2. The aggregate accrued interest on the debentures payable on the redemption date will be about $122,223.11, or about $20.22 on each $1,000 of the debentures.
Before Feb. 28, holders of the debentures may convert the debentures into common shares of the company at 50 common shares for each $1,000 of the debentures, or a conversion price of $20 per share.
Payment of the redemption price for the debentures will be made by the trustee, Wilmington Trust Co., in its capacity as paying agent.