Matria calls 4.875% convertibles

New York, April 27 - Matria Healthcare, Inc. said it will redeem its 4.875% convertible senior subordinated notes on May 27.

The Marietta, Ga., disease management company said it is exercising the soft call option which has been triggered because its stock has closed at more than 150% of the conversion price for at least 20 out of 30 trading days.

Holders can convert the notes to stock at a price of $19.66 per share or 50.87295 shares per $1,000 principal amount up to May 26. Matria stock closed at $28.00 on Wednesday.

Matria issued $86.25 million of the convertibles in May 2004.

"We are pleased that our performance has enabled us to offer this redemption," said Parker H. "Pete" Petit, Matria's chairman and chief executive officer, in a news release. "Assuming the noteholders convert at this price, we will have successfully eliminated virtually all of our debt and strengthened our balance sheet."

Holders who do not convert will receive a make-whole payment of all remaining interest payments through May 1, 2009.

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