Cendant says only $150,000 convertibles put back

New York, May 6 - Cendant Corp. said only $150,000 of its zero-coupon convertible debentures due May 2021 were put back to the company.

Before the put option exercise date on May 4, the New York provider of travel and residential real estate services had $1 billion of the securities outstanding.

The announcement that "virtually all" holders retained their securities follows a sweetener added by Cendant to discourage exercise of the option. The company said last week it was amending the terms of the convertibles to pay cash interest of 3% from May 5, 2002 through May 4, 2003 and it added an additional put option at par on May 4, 2003.

"We believe the decision by virtually all the holders to retain the debentures is a result of the strength of Cendant's business model and the potential for future stock appreciation," said Cendant chairman, president and chief executive officer Henry R. Silverman in a news release. "As we continue to execute our plan to achieve increased earnings, we expect that our investors will be rewarded by a multiple that is more closely aligned with the marketplace."

Cendant's convertibles closed at 101½ on Friday indicating holders were unlikely to exercise the put option.

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