Emeritus wraps early conversion offer for 6.25% debentures

By Laura Lutz

Washington, March 9 - Emeritus Corp. completed its offer to pay cash for early conversion of its 6.25% convertible subordinated debentures due July 1, 2008.

The offer expired at 5 p.m. ET on March 8. It launched on Feb. 6.

Of the $26.575 million principal amount of the debentures previously outstanding, $16.12 million principal amount was converted in the offer.

The company issued 732,726 shares in exchange for the converted debentures. Emeritus will also pay about $1.5 million in interest on April 16 to holders who converted their debentures.

The conversion price was $22.00 per share.

When the offer was announced, the company noted that 78.2% of the debentures were owned by affiliates and that entities controlled by Daniel R. Baty, the company's chief executive officer, held $15.8 million of the debentures.

At that time, representatives of the Bay entities had informed Emeritus that they intended to convert all of their debentures in the offer.

Seattle-based Emeritus provides assisted living and Alzheimer's and related dementia care services to seniors.

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