CP Ships notes fully tradable again
CP Ships said that its notes issued in February and due 2024 are fully tradable again, after a hiatus caused by the restatement of its financial results.
The registration statement concerning the notes was initially declared effective by the U.S. Securities and Exchange Commission on April 26. “However, following CP Ships’ May 11, 2004 announcement of the restatement of 2003 financial results, use of the registration statement was suspended pending the filing of restated results,” the Canadian-registered company said.
Subsequently, the interest rate payable on the notes increased to 4.25 percent on June 25 and to 4.5 percent on Sept. 23. With reactivation of the registration statement, the interest rate has reverted to 4 percent.
On Feb. 24, CP Ships issued and sold $200 million of 4-percent convertible senior subordinated notes due 2024, on a private placement basis. Under limited circumstances, the notes may be converted into common shares of CP Ships.
Due to accounting errors, CP Ships announced in May and August that it had to revise its financial results and accounts for the fiscal years 2002 and 2003, as well as for the first quarter of 2004.
CP Ships notes fully tradable again