Computer Associates calls $660 million 5% convertibles

By Caroline Salls

Pittsburgh, March 4 - Computer Associates International Inc. said it will redeem $660 million of its 5% convertible senior notes due March 15, 2007 on March 21 at a price of $1,020 per $1,000 principal amount of notes plus interest accrued up to but excluding the redemption date.

The notes can be converted into the company's common stock prior to the close of business on March 16 at a conversion price of $24.34 per share.

Computer Associates stock was selling at $27.33 Friday morning.

The company also intends to exercise its call spread repurchase option to buy shares of its stock at the equivalent of the redemption price of $24.83 to avoid potential dilution from conversion of the notes.

Computer Associates is an Islandia, N.Y.-based software company.

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