Cendant says nearly all 0% convertibles due 2021 put back

New York, May 5 - Cendant Corp. said holders of nearly all its zero-coupon convertible debentures due May 2021 exercised the put option to sell the securities back to the company.

In total $394 million or 98% of the convertibles were put back to Cendant at par.

The New York travel and residential real estate services company funded the redemption with cash on hand.

"This debt repayment is another significant step in our commitment to deploy our cash to reduce corporate debt. We continue to expect to reduce our corporate debt, net of cash on the balance sheet, by $1 billion during 2003," said Cendant's chairman, president and chief executive officer Henry R. Silverman in a news release.

Avaya may repurchase LYONs with junk bond proceeds

New York, April 5 - Avaya Inc. said it may buy back outstanding Liquid Yield Option Notes due 2021 with proceeds of an offering of $175 million senior secured notes announced Monday.

The notes will be sold as an add-on to the company's existing 11 1/8% senior secured notes due 2009.

The Basking Ridge, N.J. company said proceeds will be used for general corporate purposes including, but not limited to, the repurchase of the company's LYONs due 2021.

Valhi starts tender for Titanium Metals convertibles

New York, May 5 - Valhi, Inc. started a tender offer to buy up to 1 million of Titanium Metals Corp.'s 6 5/8% convertible preferred securities, issued through Timet Capital Trust I, with a liquidation preference of $50.

The Dallas company is offering to pay $10 per security. It will not pay accrued dividends.

Valhi said in a filing with the Securities and Exchange Commission that it is making the tender to buy the securities for investment purposes because it believes they represent a long-term investment opportunity, "considering the highly cyclical nature of Timet's business."

Valhi is an affiliate of Titanium Metals, owning 48.7% of its common stock and 42% of the 6 5/8% convertible preferreds.

Valhi said that in the last six months related parties have bought 1.7 million of the securities at prices ranging from $2.25 to $17.00.

The only reported trades in the past 60 days are on March 7 for 53,600 securities at $15.54 per security, on March 10 for 300 securities at $2.25 per security, on April 24 for 100 securities at $17.00 per security and on May 2 three trades for a total of 1,000 securities at prices from $11.75 to $17.00 per security.

For investors, Valhi said its offer presents a "liquidity opportunity that may not otherwise be available to them" and noted that they will not have to pay brokerage charges or commissions.

Valhi will use borrowings on its credit facility to fund the purchase.

The securities convert into Titanium Metal common stock at the rate of 0.1339 shares each. Titanium Metals stock closed at $24.20 on Monday.

The tender runs through midnight ET on June 2 unless extended.

Innisfree M&A Inc. (888 750-5834) is the information agent for the tender offer and Computershare Trust Co. of New York is the depositary.

http://www.sec.gov/Archives/edgar/data/1011657/000005925503000015/exa1.txt

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