New Century ups price in offer to convert 3.5% notes due 2008 into stock

New York, Dec. 10 - New Century Financial Corp. said its New Century TRS Holdings Inc. subsidiary has increased the payment in its previously announced offer to convert all of New Century Financial Corp.'s $210 million of 3.5% convertible senior notes due 2008 into stock.

New Century TRS is now offering 28.7366 shares and $115 payable in stock for each $1,000 principal amount of the convertibles plus accrued interest from July 3 in cash, up from 28.7366 shares and $110 in stock plus accrued interest previously.

The amount is the regular conversion ratio plus an additional $115.

The exchange was extended to midnight ET on Dec. 23 from midnight ET on Dec. 20.

As of Dec. 9, holders had tendered $13.9 million or 6.6% of the convertibles.

New Century, an Irvine, Calif.-based real estate investment trust, announced the offer on Nov. 22. It had previously said it planned the tender in order to improve its capitalization on a consolidated basis by increasing its outstanding equity base and reducing its debt.

The conversion will also reduce interest expense and allow New Century to conserve cash for use in its business. It also expects the offer will improve its ability to issue new debt at attractive rates and beneficial terms.

Lehman Brothers Inc. (800 438-3242) and Bear, Stearns & Co. Inc. are dealer managers. Georgeson Shareholder Communications Inc. is the information agent (800 319-6872).

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