Consolidated Thompson offers to purchase all 5% convertibles due 2017

By Toni Weeks

San Diego, May 12 - Consolidated Thompson Iron Mines Ltd. announced that, as a result of its acquisition by Cliffs Natural Resources Inc., the company has delivered to trustee Equity Financial Trust Co. an offer to purchase at par the company's outstanding 5% convertible unsecured subordinated debentures due Nov. 30, 2017.

The offer to purchase will be mailed Thursday to registered noteholders, according to a press release.

The completion of the acquisition constitutes a cash change of control under the indenture for the debentures. As a result, each holder of the convertibles may convert its convertible debentures at a reduced conversion price of US$11.981, resulting in a cash payment of C$1,439.78 per US$1,000 principal amount of debentures. The conversion period expires at the close of business on the 30th day after the offer to purchase is mailed.

Consolidated Thompson is a Montreal-based mining company.

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