Tarragon accepts $54.25 million 8% convertibles in early exchange offer

By Jennifer Chiou

New York, Aug. 24 - Tarragon Corp. announced it accepted the $54.25 million or 90.4% of its 8% senior convertible notes due 2009 tendered prior to the expiration of its early conversion offer at 5 p.m. ET on Aug. 23.

Noteholders who converted their notes will get 81.6993 shares of Tarragon stock and $80.00 in cash for each $1,000 principal amount of notes plus accrued interest up to but excluding the expiration date.

Tarragon, a New York homebuilder, will issue 4.4 million shares of common stock and pay $6.2 million in cash for the offer.

On Aug. 9, the company increased the payment in its offer to $80.00 in cash per $1,000 principal amount of notes from $50.00 in cash, and the total payment is equal to the regular conversion rate plus the extra $80.00 in cash.

The company had previously extended the expiration of its offer to Aug. 23 from 5 p.m. ET on Aug. 15.

US Bank NA was the conversion agent (contact Specialized Finance Department at 800 934-6802).

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