TORONTO, May 14, 2012 /CNW/ - General Donlee Canada Inc. (TSX: GDI)
("General Donlee" or the "Company") today announced that it has
exercised its right to partially redeem its 7% convertible unsecured
subordinated debentures maturing June 30, 2014 (the "Debentures") in
accordance with the terms of the indentures governing the Debentures.
On June 13, 2012 (the "Redemption Date"), the Company will redeem
Debentures in an aggregate principal amount of $20,000,000,
representing approximately 44.4% of the current outstanding balance of
the Debentures. The record date for determining which holders of
Debentures shall receive the proceeds of redemption shall be June 6,
On redemption, the Company will pay to the holders of redeemed
Debentures the redemption price (the "Redemption Price") equal to the
outstanding principal amount of the Debentures to be redeemed, together
with all accrued and unpaid interest thereon up to but excluding the
Redemption Date, for a total of $1,031.45 per $1,000 principal amount
of Debentures. The Debentures that are redeemed will cease to bear
interest from and after the Redemption Date.
There are approximately $45,027,000 in principal amount of Debentures
outstanding. Based on certain conditions, the Debentures are
convertible, at the holders' discretion, at $6.55 per share at any time
prior to the maturity date of June 30, 2014. The Company intends to use
funds from its new term credit facility to pay the Redemption Price of
the redeemed Debentures.
The Debentures are expected to be redeemed on a pro rata basis to the
nearest multiple of $1,000 in accordance with the principal amount of
the Debentures registered in the name of each holder. Holders of
Debentures are not required to take any action in connection with the
About General Donlee Canada Inc.
General Donlee Canada Inc. is a leading diversified manufacturer of
precision-machined products for the military, commercial and general
aerospace industries, and a specialist in the manufacture of
precision-machined products for the industrial products and power
generation industries. General Donlee's operating strategy focuses on
targeting niche markets for products that are aligned with its
sophisticated manufacturing capabilities and skilled workforce.
Forward looking statements include the timing, final amount and
allocation of the redemption proceeds. As with all forward-looking
statements, caution must be exercised to ensure that appropriate
interpretation is made. Certain forward-looking statements are based on
information currently available to Management, but are subject to a
number of uncertainties and risks that could cause actual results to
differ materially from the results discussed in the forward-looking
statements. These uncertainties and risks include, but are not limited
to those listed under the "Risk Factors" section of the Company's 2011
Annual Information Form, dated March 30, 2012 (which can be found at www.sedar.com).
Further information can be found in the disclosure documents filed by
General Donlee Canada Inc. with the securities regulatory authorities,
available at www.sedar.com or through the Company's website at www.generaldonlee.com.