Summary
Quanta Services, Inc. (PWR) announced a notice of redemption for its outstanding 4.50% Convertible Subordinated Debentures due 2023, with an aggregate principal amount of approximately $269.98 million. The redemption is scheduled for October 8, 2008, at a price of 100% of the principal amount plus accrued interest. Importantly, debenture holders have the option to convert their debentures into Quanta common stock at a conversion price of $11.14 per share (89.7989 shares per $1,000 principal amount) instead of receiving the redemption price. Holders must submit a conversion notice by October 6, 2008. Additionally, debenture holders have a repurchase right on October 1, 2008, at 100% of the principal amount plus accrued interest. Due to this repurchase right, the debentures were already reclassified as a current obligation as of October 1, 2007.
Key Highlights
- 1Quanta Services is redeeming all outstanding 4.50% Convertible Subordinated Debentures due 2023.
- 2The total principal amount of debentures to be redeemed is approximately $269.98 million.
- 3The redemption date is set for October 8, 2008.
- 4Debenture holders have the option to convert their debentures into Quanta common stock at $11.14 per share.
- 5The conversion option requires a notice to be delivered by October 6, 2008.
- 6Debenture holders also possess a repurchase right on October 1, 2008.
- 7The debentures were reclassified as a current liability in October 2007 due to the repurchase option.