Oak Industries Offering Stock for Notes, Debentures

Oak Industries, which last year retired 85% of its $230 million in long-term debt, on Wednesday initiated a stock exchange that, if successful, would retire all but $3 million of the Rancho Bernardo-based company’s remaining $29.8 million in outstanding debentures and notes.

Last year’s offering included a combination of cash and stock, but the new swap offers only stock in exchange for debentures and notes with interest rates ranging from 9.625% to 13.5%. The offering will expire on April 23.

After some bond and note holders balked at the 1986 exchange offer, Oak eventually extended its deadline eight times for a total of three extra months. The exchange was part of an Oak restructuring effort that focused on debt reduction.

If the $29.8-million swap is successful, Oak could trim its annual interest payments by about $4 million, according to Oak spokeswoman Mary Lou Coburn.