PMI Group exchanges 95% of existing 2.5% convertible debentures

By Laura Lutz

Des Moines, Aug. 22 - PMI Group, Inc. exchanged $341.478 million, or 95%, of its $359.892 million outstanding 2.5% senior convertible debentures due 2021 in its exchange offer that expired on Aug. 16.

The company exchanged the notes for an equal amount of its new 2.5% senior convertible debentures due 2021 and an exchange fee of $3.50 for each $1,000 principal amount.

The final amount of exchanged notes is slightly lower than the $341.678 million amount that the company gave in preliminary results on Aug. 17.

After the exchange, $341.478 million of the new debentures and $18.414 million of the existing debentures will be outstanding.

The new notes will have an added net share settlement feature that allows PMI to pay for a portion of any conversion in cash.

The new debentures also require puts to be paid in cash, and in some cases they allow holders to decide the form of payment for a change of control.

The offer was announced July 3.

The PMI Group is a Walnut Creek, Calif.-based provider of credit enhancement products.

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