STONE CONTAINER <STO> TO REDEEM DEBT
Stone Container Corp said it has
elected to redeem 200 mln dlrs of convertible debt.
    The paperboard and packaging producer said the debt
consists of the entire outstanding principal amount of its
6-3/4 pct convertible subordinated debentures due April 15,
2011, and all of its outstanding series C cumulative
convertible exchangeable preferred shares, both issued in the
principal amount of 100 mln dlrs each.
    Stone said April 10 is the redemption date for the
convertible debentures and April 27 is the redemption date for
the series C preferred.
    Stone Container said the convertible debentures' redemption
price is 1067.50 dlrs plus accrued interest of 32.81 dlrs for a
total of 1100.31 dlrs for each 1,000 dlrs prinicipal amount of
the debentures. Interest on the debentures will stop accruing
on and after its redemption date, the company said.
    Stone Container added that the series C preferred's
redemption price is 53.15 dlrs plus accrued and unpaid
dividends of 12 cts for a total of 53.27 dlrs a share.
Dividends on the shares will stop accruing on and after their
redemption date as well, Stone Container said.
    Stone Container said shareholders also have the right to
convert any or all of the debt into common shares at the
conversion price of 56 dlrs a common share, or about 17.857
shares for each 1,000 dlrs of debentures ,and .893 shares for
each series C share.
    The company said the conversion right will terminate after
1700 EST April 9 for the debentures and 1700 EST April 13 for
the series C.
    Stone said that those electing to convert their holdings to
common shares, becoming holders of record by May 22, will be
entitled to the 20 cts per share quarterly cash dividend
payable June 12, as well as the additional shares from the
previously announced two-for-one stock split to be issued on
June 12.
 Reuter
