Millennium may add sweetener to discourage exercise of upcoming put

New York, March 31 - Millennium Pharmaceuticals, Inc. said it is considering whether to add a sweetener to discourage holders of its 4.50% convertible senior notes due June 15, 2006 and 5.00% convertible subordinated notes due March 1, 2007 from exercising the upcoming put option.

The Cambridge, Mass. biopharmaceutical company said it has not yet decided whether to make the change - which would involve adding additional rights to the notes - but will make an announcement by April 22.

Millennium Pharmaceuticals assumed the notes as part of its merger with COR Therapeutics, Inc. on Feb. 12, 2002.

They are putable up to 9.00 a.m. ET on April 29 at 109.5 of par for the 4.5% convertibles and 108.5 for the 5% convertibles. Holders will also receive accrued interest through April 28.

The upcoming put option was added a year ago as an incentive to discourage holders from participating in the change-of-control tender offer Millennium was required to make as part of its acquisition of COR.

The paying agent for the put option is U.S. Bank NA (contact Frank Leslie at 651 244-8677).

Anadarko calls 0% convertibles

New York, March 31 - Anadarko Petroleum Corp. called its zero-coupon convertible debentures due March 2020.

The Houston oil and gas exploration and production company will pay $556.46 per debenture and the redemption will be on April 15.

Holders can convert their debentures into stock until April 14. The redemption price is equivalent to a price of $47.85 per share under the conversion provisions. Anadarko stock closed at $46.00 Friday.

The company said that if all the convertibles are redeemed for cash it will have to pay $383 million. If will fund the redemption from borrowings under its existing credit facilities which, it said, offer lower effective interest rates.

Affymetrix buys back $1.1 million convertibles

New York, March 31 - Affymetrix Inc. said it bought back $1.1 million of its 4.75% convertible subordinated notes due 2007 during 2002.

The company said in a filing with the Securities and Exchange Commission that it paid $0.9 million in cash for the securities.

The buybacks follow repurchases of $5.0 million in 2001.

Solectron to pay upcoming put in cash

New York, March 31 - Solectron Corp. said it will pay the upcoming put on its zero-coupon convertible senior notes due May 2020 in cash.

Holders can put the securities back to the company on May 8.

Solectron has the choice of paying the put in cash, stock or a combination.

As of Feb. 28 Solectron had $522 million accreted value of the notes outstanding.

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