89 Annual Report 2013  On redemption or at maturity, the Company will repay the indebtedness of the convertible debentures by paying  an amount equal to the principal amount of the outstanding convertible debentures, together with accrued and  unpaid interest thereon. The Company may, at its option, elect to satisfy its obligation to repay the principal  amount of the convertible debentures, which are to be redeemed or which have matured, by issuing shares to the holders of the convertible debentures. The number of shares to be issued will be determined by dividing  $1,000 (one thousand) of principal amount of the convertible debentures by 95% of the weighted average trading  price of the shares on the Toronto Stock Exchange for the 20 consecutive trading days ending on the fifth trading  day preceding the date for redemption or the maturity date, as the case may be. The Company allocated $1.2 million of the Fifth series debentures into an equity component. During the  year, the Company recorded $147 (September 29, 2012 - $115) in finance costs for the accretion of the Fifth series debentures.  The Company incurred issuance costs of $2.7 million, which are netted against the convertible debenture liability.  The fair value of the Fifth series debentures as at September 28, 2013 was approximately $62.3 million (September  29, 2012 - $63.6 million) based on market quotes.  On December 19, 2011, some of the net proceeds from the issuance of the Fifth series debentures were used to  redeem the third series 5.9% convertible unsecured subordinated debentures (“Third series debentures”). The  total amount redeemed was $51,679, as an amount of $26,257 was converted to 5,148,427 common shares  by holders of the convertible debentures during the period from October 2, 2011 to December 19, 2011. In  addition, $9 was repurchased during the first quarter of fiscal 2012 by the Company under the Normal Course  Issuer Bid (“NCIB”) prior to the redemption date. (In thousands of dollars except as noted and per share amounts) Notes to CoNsolidated FiNaNCial statemeNts 20. CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES (CONTINUED):  (ii) Fifth series (continued): (iii) Third series: