GREENVILLE, Wis., Feb. 24, 2011 (GLOBE NEWSWIRE) -- School Specialty (Nasdaq:SCHS ) has entered into separate, privately-negotiated exchange agreements under which it will retire $100 million in aggregate principal of its outstanding 3.75% Convertible Subordinated Debentures due 2026 (the "Existing Debentures") in exchange for its issuance of $100 million in aggregate principal of new 3.75% Convertible Subordinated Debentures due 2026 (the "New Debentures"). Following these transactions, $100 million in principal amount of the Existing Debentures will remain outstanding.
The New Debentures mature in 2026 and will pay interest semi-annually at a rate of 3.75% per year in respect of each $1,000 original principal amount of New Debentures and their principal will accrete at a rate of 3.9755% per year, compounding on a semi-annual basis. The New Debentures will be convertible, at the option of School Specialty, into cash or a combination of cash and shares of School Specialty common stock upon satisfaction of certain conditions. Shares of School Specialty common stock issuable upon conversion of the New Debentures have been reserved for issuance.
Holders of the New Debentures have the option to require School Specialty to purchase the New Debentures outstanding on November 30, 2014, and certain subsequent dates, at a price equal to the accreted principal amount of the New Debentures delivered for repurchase plus any accrued and unpaid interest on the original principal amount of such New Debentures. School Specialty has the right to redeem the New Debentures beginning May 30, 2014 at a price equal to the accreted principal amount of the New Debentures to be redeemed plus any accrued but unpaid interest on the original principal amount of such New Debentures.This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV