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Prospect News home > News index > List of issuers T > Headlines for Tenders 2002 > News item |
Aames sweetens, extends exchange offer for convertibles
New York, Nov. 27 - Aames Financial Corp. amended its exchange offer to refinance its outstanding 5.5% convertible subordinated debentures due 2006 to make it more attractive and again pushed back the expiration date.
The Los Angeles consumer finance company is now offering holders of the existing convertibles $1,000 principal amount of new 5.5% convertible subordinated debentures due 2012 for each $1,000 principal amount of the existing securities.
The change increases the amount of new convertibles being offered from the previous level of $800 principal amount per $1,000 principal amount of the old convertibles and increases the interest rate from 4% previously.
In addition, the sinking fund payment has been increased. Aames will now redeem 40% of the new convertibles at par plus accrued interest on Dec. 23, 2002, up from 30% on Dec. 15, 2002 previously.
The exchange now expires at 5.00 p.m. ET on Dec. 13 compared to 5.00 p.m. ET on Dec. 3 previously. When first announced the exchange was set to expire at 5.00 p.m. ET on June 13.
Aames said so far it has received tenders from holders of $42.9 million of the existing convertibles, the same as at its last announcement on Nov. 22. The figure is 37.6% of the amount outstanding.
The new securities will be convertible at any time on the same terms as the old ones.
Ames said the offer applies to all its existing $113.9 million of 5.5% convertibles.
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