Cendant adds additional put, cash interest to zero-coupon convertibles due 2021

New York, May 1 - Cendant Corp. added a sweetener to its existing zero-coupon convertible debentures due May 2021 ahead of the May 4 put on the securities.

The New York travel and residential real estate services company said it will pay cash interest of 3% from May 5, 2002 to May 4, 2003 and include an extra put option at par on May 4, 2003 to holders who do not exercise the upcoming put.

Cendant has $1 billion face amount of the convertibles outstanding. They are convertible into 39.0755 shares under certain circumstances; they are not currently convertible. Cendant stock closed at $17.86 Wednesday.

The additional interest will be paid on Nov. 4, 2002 and May 5, 2003 to holders who do not exercise the put.

Under the upcoming put, holders can require Cendant to redeem the convertibles at par on May 4.

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