Amerisafe to redeem $25.9M in convertible stock

AP News
Posted: Nov 30, 2009 4:46 PM

Amerisafe Inc., which sells high-hazard workers' compensation insurance, on Monday said it will redeem all of its outstanding convertible stock.

The company said on Dec. 31, it will pay $103.50 per preferred share in redeeming all 250,000 outstanding shares of its series C and D convertible preferred stock. That amounts to $25.9 million if all shares are redeemed.

Preferred shareholders have until the end of the year to convert their shares into common stock. The 250,000 outstanding shares of preferred stock are convertible into 1.2 million common shares. The redemption provides for a cash payment equal to $21.30 per common share.

Amerisafe's common shares closed Monday at $16.89. It has traded between $13.12 and $21.97 in the past 52 weeks and is down more than 16 percent for the year.

Amerisafe said it expects preferred shareholders to accept the cash redemption, given the recent trading range.