WCI Communities plans to amend contingent convertibles

New York, Nov. 2 - WCI Communities Inc. said it plans to modify the terms of its issued $125 million of 4% contingent convertible senior subordinated notes in response to the Financial Accounting Standards Board's new rules on accounting for this type of security.

As a result, the Bonita Springs, Fla., builder said it does not anticipate its 2004 and 2005 earnings will be affected by the change.

Under the terms of the rule, companies will have to treat contingent convertible securities as if they have been fully converted for earnings per share calculations, regardless of whether the conversion trigger has been hit. But a number of issuers have amended or asked investors for authorization to amend their convertibles to reduce or eliminate the impact of the new regulations.

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