Cummins to redeem $300 million 7% convertible preferreds

By Jennifer Chiou

New York, May 9 - Cummins Inc. said it will redeem $300 million of its 7% convertible cumulative quarterly income preferred securities due 2031 on June 15, the first call date.

The Columbus, Ind., company issued the securities in June 2001.

Cummins is aiming to reduce its interest expense by $10.5 million in 2006 and $21 million annually starting in 2007.

The company is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.

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