American Retirement says 75.1% of convertibles tendered in exchange

New York, Sept. 26 - American Retirement Corp. said it completed the exchange of $99.8 million or 75.1% of its 5¾% convertible subordinated debentures due 2002.

The Nashville, Tenn. provider of senior living housing and care issued $86.8 million of new 5¾% series A senior subordinated notes due Sept. 30, 2002 and $16.0 million of new 10% series B convertible senior subordinated notes due April 1, 2008.

For each $1,000 principal amount of the old convertibles, holders will receive $869 principal amount of series A notes and $160 principal amount of new series B convertibles.

Following the exchange $33.1 million of the old convertibles remain outstanding.

Thanks to the 75.1% response to the exchange, American Retirement said it anticipates meeting the conditions on financing commitments from Health Care Property Investors, Inc. which were condition on at least $99.7 million or 75.0% of the existing convertibles being tendered.

American Retirement announced the exchange on Aug. 14 and then modified it on Sept. 12 following discussions with holders.

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