Cox raises price in tender for Prizes, Phones

New York, May 19 - Cox Communications, Inc. said it raised the price it is offering to pay for its 2% exchangeable subordinated debentures due 2029 and 3% exchangeable subordinated debentures due 2030.

The Atlanta broadband communications company is now offering $41.50 per $88.50 principal amount of the Prizes and $590 per $1,000 principal amount of the Phones validly tendered by the expiration date.

The expiration date remains 5:00 p.m. ET on June 4.

Previously Cox was offering $39.50 for each $88.50 original principal amount of the Prizes and $581.25 for each $1,000 original principal amount of the Premium Phones, if validly tendered before 5.00 p.m. ET on May 19. After May 19 but before the expiration date of 5:00 p.m. ET on June 4, Cox had been offering to pay $37.50 per Prizes and $561.25 per Premium Phones.

Cox will pay accrued interest through the settlement date.

Holders of record of the Prizes on May 1 will receive the regularly scheduled quarterly interest payment on May 15 regardless of whether they tender.

Cox said the tender is part of its continuing efforts to reduce its long-term obligations and simplify its balance sheet.

Morgan Stanley (Contact the Liability Management Desk at 800 624-1808) and Merrill Lynch & Co. (Contact the Liability Management Desk at 888 654-8637) are dealer managers and Georgeson Shareholder Communications Inc. (800 813-3269) is information agent for the tender offers. Banc of America Securities LLC and SunTrust Robinson Humphrey are serving as co-managers for the tender offers.

Silicon Graphics extends exchange for 5.25% convertibles

New York, May 19 - Silicon Graphics, Inc. said it extended its exchange offer for its 5.25% senior convertible notes due September 2004 to midnight ET on June 13 from midnight ET on May 16.

The Mountain View, Calif. high-performance computer company said it moved back the deadline for a number of reasons including giving more time for non-institutional holders to tender their notes. It said it believes about 20% of the convertibles are hold by non-institutional investors.

Silicon Graphics also amended the fee to be paid to dealers. It is now $5.00 per $1,000 principal amount solicited from and tendered by beneficial holders of accounts of $50,000 or less in principal amount and $2.50 per $1,000 principal amount solicited from accounts holding more than $50,000 up to $250,000 in principal amount of the notes. No fee will be paid for account with more than $250,000 of the convertibles.

All other terms of the offer remain unchanged.

As previously announced, Silicon Graphics is offering new debt securities with a higher coupon and longer maturity in exchange for the existing convertibles.

The company said in a filing with the Securities and Exchange Commission that it is carrying out the exchange because it does not expect to generate enough cash to be able to repay the existing convertibles at maturity. It had $141 million of cash at March 28.

Holders who participate will receive either new 11.75% senior notes due July 2009 that are not convertible into stock or new 6.5% senior convertible notes due July 2009 convertible at a price of $3.00 per share. The existing notes convert at $18.70. Silicon Graphics stock closed at $1.48 Monday.

The 11.75% notes will be redeemable at 105 in 2003, declining to par in 2008. The 6.5% convertibles will be redeemable at par after three years subject to a 150% hurdle or at par with no hurdle after four years.

For either series of security the exchange will be on a one-for-one basis.

SGI will issue no more than $120 million of the new convertibles in the exchange. If more than $120 million of the old convertibles are tendered for new convertibles the company will issue the new convertibles on a pro rata basis.

The offer is subject to various conditions including that at least 90% principal amount of the existing convertibles are validly tendered and not withdrawn.

Silicon Graphics said that Highfields Capital, which holds approximately $68 million principal amount or 29% of the existing notes, has agreed to tender and not to withdraw its notes in exchange for 11.75% senior notes.

The information agent for the exchange is MacKenzie Partners (800 322-2885).

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