Spartan Stores, Inc., (NASDAQ:SPTN), today called for the redemption of the outstanding $57.4 million aggregate principal amount of 3.375% Senior Convertible Notes due 2027 (“Convertible Notes”) on March 1, 2013.
The Company plans to fund this redemption with available cash and borrowings under its revolving credit facility.
Convertible Notes called for redemption may be converted at any time before the close of business on February 28, 2013. The conversion rate is 28.296406 shares of common stock per $1,000 principal amount of Convertible Notes, an adjustment from the initial conversion rate of 28.0310 shares of common stock per $1,000 principal amount of Convertible Notes. The last sale price of common stock (NASDAQ: SPTN) reported on January 3, 2013 was $16.02 per share. Based on this reported last sale price, the Company anticipates that the holders of Convertible Notes will elect to receive the redemption price in cash rather than convert their Convertible Notes.
To convert their Convertible Notes, holders must satisfy all the requirements set forth in the indenture governing the Convertible Notes and in the Convertible Notes, including the following:
- A holder must complete and manually sign a conversion notice or facsimile of the conversion notice, which notice is irrevocable. A form of conversion notice is on the back of the Convertible Notes or may be obtained from the conversion agent.
- A holder must surrender the Convertible Notes to the conversion agent.
- A holder must furnish appropriate endorsement and transfer documents, if required by the conversion agent.
- A holder must pay all transfer or similar taxes.
- A holder must pay funds equal to interest payable on the next interest payment date, if required by Section 11.01(d) of the indenture governing the Convertible Notes.
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