Corning: redemption of 3.5% debentures

Corning Incorporated announced 2 May 2005 that it will redeem for cash the remaining outstanding 3.50% convertible debentures due 1 November 2008 on the redemption date of 18 May 2005. Debentures in a…

Corning Incorporated announced 2 May 2005 that it will redeem for cash the remaining outstanding 3.50% convertible debentures due 1 November 2008 on the redemption date of 18 May 2005. Debentures in an aggregate principal amount of USD 190,436,000 are currently outstanding. As provided in the indenture governing the convertible debentures, the redemption price is 102% per USD 1,000 principal amount per convertible debenture, together with accrued and unpaid interest to the redemption date of 18 May 2005. In accordance with the indenture, holders retain the right to convert their convertible debentures into Corning common stock at any time before the close of business on the business day immediately preceding the redemption date. The debentures are convertible into 103.3592 shares of Corning common stock for each USD 1,000 principal amount. No payment will be made for interest accrued and unpaid on debentures surrendered for conversion. “These conversions will not impact our 2Q guidance issued on 26 April” James B. Flaws, Corning“s vice chairman and chief financial officer, said. He noted that any potential dilutive impact the conversion might have, has already been factored into the company“s 2Q guidance. Flaws added, “We are delighted with our recent ratings upgrade to BBB-, and today“s redemption of convertible bonds is one more step in our plan to further strengthen our balance sheet.” A notice of redemption is being sent to all currently registered holders of the convertible debentures by the trustee for the convertible debentures, JPMorgan Chase Bank, NA.