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Dutch recruiter USG People announced the redemption of its subordinated convertible bond of €115 million which matured today, the firm reported on Thursday.
“As anticipated, the subordinated convertible bond is refinanced through the existing syndicated credit facility, which amounts €700 million in total and which was concluded on 4 July 2011 for a 5 year period,” the staffing company said.
Hence the subordinated convertible bond has been cancelled and no underlying ordinary shares will be issued.
Convertible bonds are corporate bonds that can be used to exchange shares of the company’s common stock, usually at lower interest rates, and offers protection against a decline in the stock price.
In July, the firm reported that economic uncertainty put a brake on European growth in the second quarter of the year and refrained from issuing an outlook on 2012 earnings.
USG People is the eighth-largest staffing company in the world, according to research by Staffing Industry Analysts. It provides staffing, secondment, Human Resources (HR) and customer care services.