This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Student Transportation Inc. Announces Redemption Of Outstanding 7.5% Convertible Subordinated Unsecured Debentures

BARRIE, Ontario, Oct. 3, 2012 (GLOBE NEWSWIRE) -- Student Transportation Inc. ("STI") (TSX:STB) (TSX:STB.DB.A) announced today that it has exercised its right to redeem its 7.5% Convertible Subordinated Unsecured Debentures maturing on October 31, 2014 (the "Debentures") in accordance with the terms of the trust indenture dated as of October 26, 2009 between STI and Computershare Trust Company of Canada governing the Debentures. The redemption of the Debentures will be effective on November 2, 2012 (the "Redemption Date"). Upon redemption, STI will pay to the holders of Debentures the redemption price (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.

The aggregate principal amount of Debentures currently outstanding is Cdn $20,632,000. STI will draw funds from its existing revolving line of credit to pay the Redemption Price of those redeemed Debentures not yet converted at that time. The Debentures are listed for trading on the Toronto Stock Exchange under the trading symbol "STB.DB.A" and may be converted in accordance with their terms into common shares of STI until November 1, 2012.

"Our holders of these debentures have done well in our opinion with their investment. The company has an outstanding credit profile and an attractive dividend that are just some of the hallmarks of our eight year success as a public company. We have used debt wisely for growth," said STI Chairman and CEO Denis J Gallagher. "We have seen a considerable amount of activity in the conversion of these notes to common shares as more holders of the debentures appreciate the value in the shares from a dividend income and tax perspective. The redemption call provision of the notes outstanding allows note holders to either convert to common shares prior to the redemption date or receive cash for their debentures upon redemption. The current debt market is significantly lower in rates today and we will reduce our interest expense by calling these now with the availability in our senior credit facility." Gallagher added, "With approximately 15 percent growth built in year over year already for fiscal 2013, our focus this year as we stated on our recent analyst call is to reduce costs, lower our capital expenditures and maintain our great service which are all very attainable."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs