Union Pacific to redeem $500 million convertibles

New York, April 16 - Union Pacific Corp. said it will redeem $500 million of its $1.5 billion 6¼% convertible preferred Term Income Deferrable Equity Securities (Tides) on May 16.

The Tides will be redeemed at a price of $50.52. They were originally issued in April 1998 at $50.

The Omaha, Neb. railroad said the move is part of its ongoing efforts to strengthen its financial position and increase shareholder value. The redemption will reduce interest expense by $31.25 million a year, improve the balance sheet and decrease the dilutive effect of the Tides by 7.3 million shares.

The redemption will reduce second quarter earnings by 3 cents per diluted share because of redemption costs but add 4c per diluted share for all of 2003 and 12c per diluted share in 2004.

Trustee for the redemption is The Bank of New York (212 815-5091).

Owens & Minor brings convertible repurchases to $27.6 million

New York, April 16 - Owens & Minor, Inc. said it has now bought back a total of $27.6 million of its 5 3/8% term convertible securities series A due April 30, 2013 issued through Owens & Minor Trust I.

The repurchases were made under a $50 million program announced in the fourth quarter of 2002 covering both the convertibles and its common stock. So far the Glen Allen, Va. company has also bought back $10.9 million of stock.

At its last report on March 11, Owens & Minor said it had bought back $19.35 million of the convertibles.

Xicor buys back 5.5% convertibles

New York, April 16 - Xicor, Inc. said it bought back its outstanding $35 million of 5.5% convertible subordinated notes due 2006.

The Milpitas, Calif. chipmaker said it paid 79 cents on the dollar for the convertibles for a total of $27.5 million. That figure was made up of $14.4 million in cash and 2.9 million shares of common stock.

"This transaction has an immediate accretive impact on our earnings per share and reduces future debt obligations," said Xicor's president and chief executive officer Lou DiNardo. "A number of factors contributed to our decision to repurchase the convertible debt including a significant discount to the face value, a willingness of the note holders to accept cash and stock as consideration for the repurchase, our improved visibility on our business and the traction we now have with new product development and design win activity on our high performance analog and mixed-signal products."

Xicor sold the $35 million of convertibles in November 2001 along with warrants in a transaction with institutional investors via placement agent Robertson Stephens. They had a conversion price of $11.22, equivalent to a 10% initial conversion premium.

Xicor stock closed at $4.51 Tuesday.

Hilton to redeem 5% convertibles

New York, April 16 - Hilton Hotels Corp. said it will redeem its outstanding 5% convertible subordinated notes due 2006 with proceeds from its new offering of $500 million 3.375% convertible senior notes due 2023.

The 5% convertibles are callable at par from May 15 onwards.

Proceeds from the new offering will also be used to repay borrowings on its revolving credit facility.

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