Announcements > 03/04/2010. Deerfield to exchange 95mm of trust preferred securities.

On March 4, 2010, DFR entered into an agreement to exchange $95 million of the $120 million outstanding principal amount of trust preferred securities issued by three wholly-owned subsidiaries of DFR, for $95 million outstanding principal amount of junior subordinated notes issued by DFR.  $25 million in principal amount of trust preferred securities issued by a DFR subsidiary were not exchanged and remain outstanding. The new notes are governed by an indenture pursuant to which the notes bear a fixed interest rate of 1% per annum staring on April 30, 2010, payable through April 30, 2015 or an earlier date upon which certain specified events occur. Thereafter, the notes will be subject to a variable interest rate equal to LIBOR plus 2.58% per annum, payable on the then outstanding principal amount of the notes until maturity on October 30, 2035.  DFR may redeem the notes on or after October 30, 2010 at par for cash or replacement securities acceptable to the holders.  See the Form 8-K filed by DFR on March 10, 2010 for additional and more definitive information about the exchange.