CINCINNATI -- Kroger Co. here said it has completed the conversion of about $200 million worth of bonds to common stock -- a move that improves the company's liquidity and positions it for investments by a wider range of institutions.
According to the company, all of its 6.375% convertible junior subordinated notes due in 1999, which were issued in December 1992, have been converted into about 10.7 million shares of common stock.
"Conversion of the notes to equity will reduce annual interest expense and improve leverage ratios," the company said.
Gary Giblen, managing director of Smith Barney, New York, said the conversion "will improve the company's capital structure, which will raise Kroger's rating to a level that will enable potential institutional investors to buy Kroger stock."
