Cendant calls Codes due 2021

New York, Jan. 22 - Cendant Corp. said it will redeem its zero-coupon senior convertible contingent debt securities due February 2021 in the Codes structure on Feb. 13.

The New York travel and residential real estate services company will pay the accreted value of $655.49 per $1,000 principal amount at maturity.

The current accreted value of the convertibles is $430 million.

Holders can convert the Codes into Cendant common stock up to the close of business on Feb. 11 at the rate of 33.4 shares per $1,000 principal amount at maturity. Cendant stock closed at $22.99 Thursday.

Cendant added that if holders convert the Codes into stock then it will use the cash that would otherwise have been used for the redemption to buy back up to 22 million more shares in the open market.

Cendant said the redemption of the Codes is part of its debt reduction strategy.

© 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.