Legg Mason says 20.9M units, or 91 pct of outstanding units, were exchanged in tender offer
By APWednesday, August 12, 2009
Legg Mason completes equity unit exchange offer
BALTIMORE — Asset manager Legg Mason Inc. said Wednesday it completed an offer to exchange “equity units” for stock, with about 91 percent of units tendered.
Legg Mason said 20.9 million units were tendered. They will be exchanged for 0.8881 shares and $6.25 in cash each, for a total of 18.6 million share and $131 million in cash. The offer expired after midnight Wednesday.
On July 15, the company had 23 million units outstanding, and offered to exchange up to 95 percent of them for cash and stock. The move was intended to reduce Legg Mason’s debt and interest expense. Slightly less than 2.1 million units will remain outstanding.
In afternoon trading, Legg Mason shares rose 97 cents, or 3.6 percent, to $27.76.
