New Century says 97.4% of 3.5% convertibles tendered in early conversion offer

New York, Dec. 26 - New Century Financial Corp. said its New Century TRS Holdings Inc. subsidiary received tenders of $204.5 million or 97.4% of New Century Financial Corp.'s $210 million of 3.5% convertible senior notes due 2008 under its offer to exchange the securities into stock.

As revised on Dec. 10 and priced on Dec. 21, New Century TRS was offering 28.7366 shares and $115 payable in 1.7594 shares for each $1,000 principal amount of the convertibles plus accrued interest from July 3 in cash. The payment was increased from 28.7366 shares and $110 in stock plus accrued interest previously.

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

After being extended, the exchange expired at midnight ET on Dec. 23.

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).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.