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Actuant Corporation (NYSE: ATU) today announced that it had given notice of its intention to redeem all of the outstanding 2.00% Senior Subordinated Convertible Notes due 2023 (CUSIP No. 00508XAB0) (the "Notes") on April 27, 2012 at a price payable in cash equal to 100% of the principal amount of the Notes being redeemed (the “Redemption Price”), plus accrued and unpaid interest, if any, up to, but excluding, April 27, 2012. As of February 29, 2012, there was $117,591,000 in aggregate principal amount of the Notes outstanding.
The Notes are convertible at any time prior to 5:00 p.m. Eastern Time, April 26, 2012 at a rate of 50.6554 shares of common stock per $1,000 principal amount of the Notes surrendered. The Notes surrendered for conversion will be settled in stock in accordance with the provisions of the indenture.
"We are pleased to announce the redemption of the convertible notes, which since issued in 2003 have successfully served the needs of both Actuant and the Noteholders," said Andrew Lampereur, Actuant’s Chief Financial Officer. "Actuant has delivered strong financial performance including robust cash flow. With this redemption, Actuant will further reduce its debt leverage with no impact to fully diluted earnings per share as the share equivalent of the notes have been included in our fully diluted share count since they were issued. We remain committed to improving the capital structure of the Company and continue to examine opportunities to improve shareholder value."
The Company has prepared a notice to holders specifying the terms, conditions and procedure of the redemption. The notice is available through The Depository Trust Company (“DTC”) and U.S. Bank National Association, which is serving as the paying agent. The name and address of the paying agent and the conversion agent is as follows:
U.S. Bank National Association
60 Livingston Avenue
St. Paul, Minnesota 55107
Attention: Corporate Trust Department
To convert interests in a global Note, the holder must comply with the applicable conversion program procedures of The Depository Trust Company.