DST Systems (DST) Announces $66M in Series A Convertible Senior Debentures Exchange

November 25, 2009 8:52 AM EST

DST Systems, Inc. (NYSE: DST) 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 for $66.6 million in aggregate principal of new 4.125% Series C Convertible Senior Debentures due 2023. 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.

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