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Each Convertible
Note plus accrued interest can be converted into shares at any time
prior to redemption by the Note Holder at a Conversion Price of $0.55.
(For example, on 19 March 2009 one Convertible Note can be converted
into 3.64 shares, ignoring the effect of withholding taxes and other
deductions. Note Holders may elect to reimburse Evergreen Forests
for these taxes and other deductions, thus enabling the Note Holders
to obtain full entitlement to 3.64 shares on conversion.) |
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Each Convertible
Note is redeemable in cash on 19 March 2009 for $2.00, less any withholding
taxes and other deductions. This corresponds to an annualised pre-tax
interest rate of 7.18%. |
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Evergreen Forests
has the right to give twenty business days notice of early redemption
at any time, if after 19 March 2002 the share price is above $1.10
(that is twice the conversion price). |
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The Convertible
Notes have approved issuer levy status.
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The Convertible
Notes are secured by a second ranking floating charge over the assets
of Evergreen Forests. Financial covenants will restrict the amount
of prior or equal ranking debt. |
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The Convertible
Notes are listed on the New Zealand Stock Exchange (Issuer code: EVFGA). |
