Online Resources to Retire Remaining Convertible Debt

Tuesday 4 November 2003 08:48 CET | News

Online Resources has moved to accelerate retirement of its remaining 8 percent Convertible Subordinated Notes due 2005. The Company reported that since October 1, 2003, Noteholders had initiated the conversion of $7.5 million of this debt into equity, and that it has exercised its option to call the remaining $600,000 in Notes as of November 21, 2003.

Both the converted and called Notes are part of an original $20.0 million, 8 percent Convertible Subordinated Note issue, completed in September 2001 and due in September 2005. Through both conversions and repurchases, the Company had previously reduced the outstanding amount of this debt to the $8.1 million reflected in its September 30, 2003 balance sheet. Between October 1 and October 28, 2003, Noteholders converted $7.5 million in Notes into 1,875,000 shares of the Companys common stock at $4.00 per share, and on October 29, 2003, the conversion price reset to $4.75 per share as defined by the terms of the Notes. The Company has called the remaining Notes at 102 percent of the principal amount plus accrued interest, as defined by the terms of the Notes. Remaining Noteholders may still choose to convert their Notes before November 19, 2003. If all remaining Notes are converted, the Company will issue an additional 126,315 shares on the Redemption Date. Fourth quarter and full year 2003 guidance given by the Company in its October 21, 2003 earnings release and conference call anticipates the issuance of already converted shares. Any shares issued for additional conversions will not affect the stated guidance.

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Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
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Banking & Fintech