LITTLETON – Littleton-based tw telecom, Inc., is about to wipe out all of its current convertible debt. The IT services company has announced it will repay all of its outstanding $211.5 million in 2.375% Convertible Senior Debentures due 2026. Any 2026 debentures outstanding on July 3, 2013 will be redeemed in cash for 100% of the principal amount, plus accrued and unpaid interest for a total payment of $1,006.07 per $1,000 principal amount redeemed.
Debt holders can also convert the debentures to stock shares at a rate of about $18.64 per share (53.6466 shares per $1,000 of principal amount). On May 28, 2013, the closing price for tw telecom's common stock was $28.24. The conversion option is open until 5 p.m. EST on July 2.
Following the conversion or redemption of the 2026 Debentures, the Company will have no outstanding convertible debt. Copies of the notice of redemption and additional information relating to the procedures for redemption and conversion can be obtained by calling the trustee, Wells Fargo Bank, National Association, at 1-800-344-5128 or by fax at 612-667-6282.
Tw telecomm is a provider of managed IT services, including data networking, Internet access, voice, VPN, VoIP and security to large organizations and communications services companies across the U.S. and worldwide locations.