Emeritus receives tenders of $26.25 million 6.25% convertibles due 2006 in exchange

New York, Nov. 18 - Emeritus Assisted Living said it has received tenders of $26.25 million of its $32 million of 6.25% convertible subordinated debentures due Jan. 1, 2006 under its exchange offer.

As announced on Nov. 16, the expiration is now 5 p.m. ET on Nov. 22, pushed back from 5 p.m. ET on Nov. 16.

On Oct. 18 the Seattle-based assisted living provider said it had begun the offer of $32 million of new 6.25% debentures due December 2008 for the existing convertibles. The new notes are non-callable and interest is payable semiannually.

Other terms of the new debentures are identical to company's existing ones, including the right to convert into Emeritus stock at $22.00 per share.

Emeritus announced plans for the exchange on July 6 and previously the company said it intended to issue new non-callable debentures due June 30, 2008 with an 8% coupon.

Entities controlled by Emeritus' chief executive officer Daniel R. Baty and Saratoga Partners together own about 65% of the existing convertibles and have agreed to the exchange. They have also agreed to buy new debentures up to the amount of any existing ones that are not tendered, with the result that the existing issue will be entirely replaced.

U.S. Bank, NA is trustee.

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