AUBURN HILLS, Mich.,
April 17, 2012 /PRNewswire/
-- BorgWarner today announced that it has successfully settled
all conversions of its 3.50% Convertible Senior Notes due 2012 (the
"Notes"). The company delivered approximately 11.4 million shares
of its common stock, previously held in Treasury, to converting
Noteholders, which is equivalent to the aggregate amount of Notes
converted, or approximately $374
million, divided by $1,000,
and multiplied by a conversion rate of 30.4706. As a result of this
settlement activity, the company's balance sheet debt was reduced,
and its stockholders' equity increased, by approximately
$374 million, the impact of which
will be seen in the company's second quarter financial
statements.
The company separately and concurrently settled the call options
portion of the Notes-related bond hedge overlay, receiving
approximately 6.5 million shares of its common stock. The shares
will be held in Treasury and utilized to settle the warrants
portion of the bond hedge overlay, which matures over a 60-trading
day period beginning July 16, 2012.
The settlement of the call options reduces the company's
weighted-average basic and diluted share count used for calculated
earnings per share.
About BorgWarner
Auburn Hills,
Michigan-based BorgWarner Inc. (NYSE: BWA) is a technology
leader in highly engineered components and systems for powertrain
applications worldwide. Operating manufacturing and technical
facilities in 60 locations in 19 countries, the company develops
products to improve fuel economy, reduce emissions and enhance
performance. Customers include VW/Audi, Ford, Toyota,
Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler,
Fiat, BMW, Honda, John Deere, PSA, and MAN. For more information,
please visit www.borgwarner.com.
SOURCE BorgWarner Inc.