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Metal parts supplier Metaldyne buys back bonds

PLYMOUTH, Mich., Aug 21 (Reuters) - U.S. metal parts supplier Metaldyne Corp. said on Wednesday it plans to spend $77 million to buy back 4.5 percent convertible subordinated notes maturing in 2003.

The company, based in Plymouth, Michigan, said it expects to buy back $78.2 million of the notes at 98.5 cents on the dollar. It said the notes ceased to be convertible into Metaldyne common shares because of a November 2000 transaction in which the company went "private."

Metaldyne conducted a "modified Dutch auction" for the notes, meaning that successful tendering noteholders will all receive the same price.

It said it will redeem on a prorated basis, with a proration factor of about 70 percent, the $112 million of notes that noteholders tendered at 98.5 cents on the dollar.

The tender offer expired on Wednesday, and the proration factor will not be available until about Aug. 26, Metaldyne said. Credit Suisse FIrst Boston arranged the buyback.