Agricore United plans to redeem 9% convertibles

By Jennifer Chiou

New York, Nov. 30 - Agricore United announced it intends to redeem its C$105 million 9% convertible unsecured subordinated debentures due Nov. 30, 2007.

The redemption date is Jan. 10.

The number of shares to be issued in the redemption will be determined by dividing the principal amount of debentures on Jan. 10 by 95% of the volume-weighted average trading price of the shares on the Toronto Stock Exchange for 20 consecutive trading days ending on Jan. 3.

Holders may convert their debentures prior to 5 p.m. ET on Jan. 9 at a conversion rate of 133.3333 shares for each C$1,000 principal amount. The company's stock closed at C$135.74 on Wednesday.

The Winnepeg, Man., agricultural company previously announced in its second-quarter report that it expected to exercise its option to redeem the debentures, which will improve its leverage ratio and lower its interest costs for the 2007 fiscal year.

Assuming no voluntary conversions prior to Jan. 10, Agricore United said it will save C$8.4 million in interest expense.

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