American Dairy Pays Down Convertible Notes Early

LOS ANGELES (AP) — American Dairy Inc. on Tuesday said that it has paid down a portion of its convertible notes ahead of schedule.

The company, which produces and distributes infant formula, dairy and other related products in China, said it paid down nearly $34 million — roughly 75 percent of its fourth and final installment on the notes due to Citadel Equity Fund before the Oct. 15 deadline.

The company would have been required to repay $34.5 million in October, but Citadel and American Dairy agreed that the account was paid in full based on this early payment.

The remaining payments to the other note holders, equal to $11.5 million, will be repaid as originally scheduled by the end of October.

Shares of American Dairy fell $1.31 to $29.39 in afternoon trading Tuesday.