Ivaco to Redeem 453,643 Second Preferred Shares, Series 5
March 25, 2003
MONTREAL, QUEBEC--Ivaco Inc. said today that on March 31, 2003 it will redeem the 453,643 of its $2.625 Second Preferred Shares, Series 5 that have been tendered for retraction at $25 per share in accordance with their terms of issuance. The Shares to be redeemed represent approximately 14.7% of the outstanding Series 5 Shares. In accordance with the terms governing the Series 5, Second Preferred Shares, the Board of Directors of Ivaco has approved the issuance of 6,032,487 Class A Subordinate Voting Shares to such Series 5 shareholders who have tendered their Shares for retraction in payment of the aggregate redemption price of $11,341,075. This will result in perpetual annual savings of approximately $1.2 million in dividends for Ivaco and will also increase Ivaco's capital by $11.3 million. This transaction will increase the aggregate number of outstanding Class A Shares and Class B Shares from 26,906,902 Shares to 32,939,389 Shares.
Ivaco is a Canadian corporation and is a leading North American producer of steel, fabricated steel products and precision machined components. Ivaco's modern steel operations include Canada's largest rod mill, which has a rated production capacity of 900,000 tons of wire rods per annum. In addition, its fabricated steel products operations in Canada and the United States have a rated production capacity in the area of 400,000 tons per annum of wire, wire products and processed rod, and over 200,000 tons per annum of fastener products. Shares of Ivaco are traded on The Toronto Stock Exchange (IVA). |
