OMV calls 1.5% convertibles due 2008

By Jennifer Chiou

New York, Jan. 11 - OMV AG announced the redemption of its remaining €50,729,729.40 of 1.5% convertible bonds due 2008.

Holders may convert their securities until Feb. 14.

The call is due to less than 10% of the original amount being outstanding. There are 165,459 bonds outstanding.

The bonds are convertible into 10 OMV shares per bond.

The Austria-based oil and gas concern said it will redeem the bonds on Feb. 21 at €306.60, the principal amount, plus accrued interest.

The convertibles were originally issued in December 2004.

The company added that in order to avoid dilution of existing shareholders and given its strong balance sheet, OMV started a share buyback program in 2006 to satisfy bond conversions.

As of Dec. 31, 26% of the total amount of convertible bonds originally issued has been converted while 65% had been repurchased.

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