AFG Exchanges Bonds for Stock to Reduce Debt

AFG Industries Inc., the Irvine glass manufacturer, said last week that it has exchanged $40-million worth of bonds, payable in the year 2005, for common stock at the rate of 59 shares for each subordinated debenture with a face amount of $1,000. Redeeming the bonds saves the company about $3.3 million a year in interest costs, reduces the debt-to-capitalization ratio to 33% from 50%, and increases the number of common shares outstanding to nearly 16.9 million by adding almost 2.4 million shares, said R.D. Hubbard, AFG Industries chairman.