Airborne raises cash payment in cash and stock option for tender

New York, Nov. 21 - Airborne Inc. increased the cash payment included in the cash and stock option included in its tender for its $150 million 5¾% convertible senior notes due 2007.

The Seattle shipping company, a subsidiary of DHL Worldwide Express BV, is now offering $993.65 in cash plus 42.7599 shares of common stock of ABX Air Inc. per $1,000 principal amount of the convertibles, up from $988.65 in cash plus 42.7599 shares of ABX Air. Airborne continues to require that to receive the cash and stock option holders must agree to convert their notes under the securities' terms; they are currently convertible into $908.65 in cash and 42.7599 shares of ABX Air.

The all-cash option remains unchanged at $1,080 in cash per $1,000 principal amount.

Airborne also extended the expiration date of the offer to 11:59 p.m. ET Dec. 5 from 5 p.m. ET Nov. 20.

The tender was originally announced on Oct. 15 and amended on Nov. 5 when Airborne added that cash and stock option.

Apart from the change in the cash component of the cash and stock alternative, the terms remain the same as those announced on Nov. 5.

As part of the tender, Airborne is seeking consents to proposed amendments to the registration rights agreement for the notes.

Deutsche Bank Securities Inc. is dealer manager and solicitation agent for the tender offer (contact Jenny Lie at 866-627-0391 or 212-250-7445). D.F. King & Co. Inc. is the information agent (888-887-0082, bankers and brokers call collect 212 269-5550) and Deutsche Bank Trust Co. Americas is the depositary.

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