PMI to pay puts of 2.5% convertibles in cash

By Jennifer Chiou

New York, June 16 - The PMI Group Inc. said it will pay cash to holders of its $360 million of 2.5% senior convertible debentures due 2021 who exercise the upcoming put option.

The put is at par plus accrued interest.

Holders can put their debentures through 5 p.m. ET on July 17.

Under certain circumstances, the debentures are convertible into 22.648 shares of PMI stock per $1,000 principal amount. However, the debentures are not currently convertible, the company said in a news release.

The company said it has the option to pay in cash, stock or a combination.

The Bank of New York is the paying agent.

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

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