Business
Clarke Inc. to complete partial redemption of debentures due December 31, 2018 and announces redemption of remaining debentures due December 31, 2018
HALIFAX , April 22, 2014 /CNW/ - Clarke Inc. (the "Company") (TSX: CKI CKI.DB.A) announce...
About this update from Clarke Inc.
[{"type":"text","content":"\n\nHALIFAX, April 22, 2014 /CNW/ - Clarke Inc. (the \"Company\") (TSX: CKI CKI.DB.A) announced today that it will complete the previously announced partial redemption of its 6% convertible unsecured subordinated debentures maturing December 31, 2018 (the \"Debentures\") for an aggregate principal amount of $12,000,000, representing 49.6% of the current outstanding balance of the Debentures on April 25, 2014. The Company will pay to the holders of redeemed Debentures the redemption price (the \"Redemption Price\") equal to the outstanding principal amount of the Debentures redeemed, together with all accrued and unpaid interest thereon up to but excluding the redemption date, for a total of $1,018.90 per $1,000 principal amount of Debentures. The Company will use available funds to pay the Redemption Price of the redeemed Debentures. The Debentures will be redeemed on a pro rata basis to the nearest multiple of $1,000 in accordance with the principal amount of the Debentures registered in the name of each holder.\n\nThe aggregate principal amount of Debentures outstanding subsequent to the partial redemption will be $12,214,300. The Company has approximately $33 million of cash on hand and has decided to exercise its right to redeem its remaining Debentures outstanding in accordance with the terms of the indenture governing the Debentures. On May 22, 2014 (the \"Redemption Date\"), the Company will redeem the remaining outstanding balance of the Debentures. On redemption, the Company will pay to the holders of redeemed Debentures the Redemption Price equal to the outstanding principal amount of the Debentures to be redeemed, together with all accrued and unpaid interest thereon up to but excluding the Redemption Date, for a total of $1,023.34 per $1,000 principal amount of Debentures. The Debentures may be converted at any time prior to 5:00pm (Toronto time) on May 21, 2014 at a conversion price of approximately $7.50 per common share.\n\nAbout Clarke\n\nHalifax-based Clarke invests in a variety of private and publicly-traded businesses and participates actively where necessary to enhance performance and increase its return. Clarke's securities trade on the Toronto Stock Exchange (CKI; CKI.DB.A); for more information about Clarke, please visit our website at www.clarkeinc.com.  \n\nForward-Looking Statements\n\nThis pr...