Vector Group prices $25 million convertibles

New York, March 30 - Vector Group Ltd. said it priced $25 million of its 5% variable interest senior convertible notes due 2011.

The sale has a $5 million greenshoe.

The notes mature in November 2011 but 12.5% of the amount outstanding must be redeemed in November 2009. There is also a put in November 2009.

The conversion price is $19.40 per share.

Interest is 5% a year with an additional amount based on cash dividends subject to a minimum of 6.75% through November 2006.

The Miami-based tobacco company plans to use proceeds for general corporate purposes including repaying credit facility borrowings.

Further details on the offering were not immediately available but the terms are the same as those of the $65.5 million deal with a $16.375 million greenshoe priced on Nov. 16, 2004 via Jefferies & Co.

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