DST Systems, Inc. Announces Exchange Transaction Involving 4.125% Series A Convertible Senior Debentures
26 November 2009 - 12:45AM
PR Newswire (US)
KANSAS CITY, Mo., Nov. 25 /PRNewswire-FirstCall/ -- DST Systems,
Inc. (NYSE:DST) (the "Company") today announced that the Company
has entered into separate privately negotiated exchange agreements
under which it will exchange $66.6 million in aggregate principal
of the Company's outstanding 4.125% Series A Convertible Senior
Debentures due 2023 ("Existing Debentures") for $66.6 million in
aggregate principal of new 4.125% Series C Convertible Senior
Debentures due 2023 ("New Debentures"). The New Debentures are
convertible under certain circumstances by holders into shares of
DST common stock per $1,000 original principal amount of debentures
at an initial conversion rate of 20.3732 shares (subject to
adjustment in certain events). This is equivalent to an initial
conversion price of $49.08 per share for the New Debentures. Shares
of the Company's common stock, into which the New Debentures are
convertible, have been reserved for issuance by the Company and
listed on the New York Stock Exchange. Holders of the New
Debentures have the option to require the Company to purchase the
notes on August 15, 2014 and certain subsequent dates, and in
certain other circumstances, at a price equal to the accreted
principal amount of the Series C debentures to be purchased plus
any accrued and unpaid interest. The Company has the right to
redeem the New Debentures beginning August 15, 2013. No
Solicitation This press release shall not constitute an offer to
sell or a solicitation of an offer to buy any securities, nor shall
there be any sale of securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. The information and comments in this press
release may include forward-looking statements respecting DST and
its businesses. Such information and comments are based on DST's
views as of today, and actual actions or results could differ.
There could be a number of factors, risks, uncertainties or
contingencies that could affect future actions or results,
including but not limited to those set forth in DST's periodic
reports (Form 10-K or 10-Q) filed from time to time with the
Securities and Exchange Commission. All such factors should be
considered in evaluating any forward-looking statements. The
Company undertakes no obligation to update any forward-looking
statements in this press release to reflect future events.
DATASOURCE: DST Systems, Inc. CONTACT: Thomas A. McDonnell, Chief
Executive Officer, +1-816-435-8684, Kenneth V. Hager, Vice
President and Chief Financial Officer, +1-816-435-8603, both of DST
Systems, Inc.
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