The redemption of the notes will be made pursuant to the terms of the indenture, dated as of July 22 2003, among CM, its subsidiary guarantors and US Bank Trust National Association, as trustee. A notice of redemption with respect to the notes has been mailed to all registered holders of the notes.
The action is consistent with the company’s stated strategy to continue to reduce its debt. Based on a debt to total capitalisation ratio of 41.6% at March 31 2007, application of this transaction results in a 38.3% pro forma debt to total capitalisation ratio as of that date. The company’s stated goal is 30% debt to total capitalisation.
The redemption will require a $1.1 million premium payment to note holders and a $0.3 million write-off of unamortised financing costs in the fiscal 2008 second quarter which ends on September 30 2007, or a charge of approximately $0.04 per diluted share. The redemption will save $2.2 million of future ongoing annualised interest expense, or approximately $0.07 per diluted share.
