Veritas to redeem 5.25%, 1.856% convertibles

New York, July 28 - Veritas Software Corp. said it will redeem its 5.25% convertible subordinated notes due 2004 and 1.856% convertible subordinated notes due 2006 on Aug. 18.

The Mountain View, Calif. storage software company will redeem the 5.25% notes at $1,015 per $1,000 principal amount and the 1.856% notes at $875.78 per $1,000 principal amount. The company will also pay accrued interest up to the redemption date.

Holders can covert the notes into stock up to 5.00 p.m. ET on Aug. 17. The 5.25% convertibles can be exchanged for 104.6514 shares of stock per $1,000 principal amount, a conversion price of $9.56. The 1.856% convertibles can be exchanged for 27.9338 shares of stock per $1,000 principal amount, a conversion price of $31.18. Veritas stock closed at $30.75 on Tuesday.

Veritas said it has $64.0 million of the 5.25% convertibles and $405 million of the 1.856% convertibles outstanding as of June 30.

In addition, Veritas' directors have extended the previously announced stock repurchase program, permitting the company to spend the $300 million already authorized for stock repurchases plus the market value at the time of repurchase of any stock issued by the company on conversion of the 1.856% notes in connection with the redemption.

American Tower to use 50% of $175 million convertible offering, part of stock sale to buy back debt

New York, July 28 - American Tower Corp. said it will use 50% of the proceeds from a planned $175 million offering of convertible notes securities and some of the proceeds from a $114.4 million offering of stock to repurchase outstanding debt.

The Boston company announced Monday that it plans to sell $175 million of convertible notes due 2010 and 12.4 million shares of common stock for estimated net proceeds of $114.4 million.

The convertible offering has a $35 million greenshoe.

The half of proceeds from the convertible sale not used to buy back debt securities will be used to repay borrowings on its credit facilities.

In addition proceeds from the stock offering will be used to repurchase outstanding debt securities or to make equity contributions to the borrower subsidiaries under its credit facilities, which will be able to use the proceeds for general corporate purposes.

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