TransTechnology Issues Stock for Debentures

TransTechnology Corp. said it converted $16 million (principal amount) of outstanding convertible subordinated debentures to stock by issuing 713,000 new common shares. The debentures, which paid 9% interest, were first issued in 1983.

The company said that, by calling and converting the debentures, it boosted shareholders’ equity and cut long-term debt. TransTechnology said it hopes the higher number of outstanding shares--now 5.3 million--will make the stock more attractive to institutional investors.

TransTechnology also said it has been awarded development contracts, worth less than $1 million, for parts used in the rescue hoist system of the Bell-Boeing V-22 Osprey tilt-rotor aircraft.

The aircraft, a hybrid helicopter and plane, is intended for use by all branches of the U.S. armed services. The company said it hopes the relatively small development contracts will lead to bigger design and production jobs.

Based in Sherman Oaks, TransTechnology makes a variety of aerospace and defense products, including pilot ejection systems and substances used by warplanes for thwarting detection. It also makes computer-aided design equipment.