Summary
Quanta Services, Inc. (PWR) announced on April 12, 2010, its intention to redeem all outstanding 3.75% Convertible Subordinated Notes due 2026, with an aggregate principal amount of $143.75 million. The redemption is scheduled for May 14, 2010, at a price of 101.607% of the principal amount, plus accrued interest. Investors holding these notes have an option to convert them into Quanta's common stock at a conversion price of $22.41 per share, with the company satisfying a portion of the conversion value in cash and the remainder in stock.
Key Highlights
- 1Quanta Services, Inc. is redeeming its $143.75 million in outstanding 3.75% Convertible Subordinated Notes due 2026.
- 2The redemption date is set for May 14, 2010, with a redemption price of 101.607% of the principal amount, plus accrued interest.
- 3Noteholders have the option to convert their notes into Quanta common stock at a conversion price of $22.41 per share until May 12, 2010.
- 4Quanta will pay the cash portion of any conversion in cash on hand.
- 5The company anticipates a loss on extinguishment of debt between $2.4 million and $4.4 million (net of tax).
- 6This action is expected to eliminate approximately $6.5 million in annual interest expense (net of tax).
- 7The impact on diluted share count and EPS is currently indeterminable due to potential conversions.