New Issue: Cendant overnight $1 billion convertibles at 3.875% yield, up 48%

By Ronda Fears

Nashville, Tenn., Nov. 20 - Cendant Inc. sold $1 billion of 10-year convertible senior notes at par to yield 3.875% with a 48% initial conversion premium. J.P. Morgan was lead manager of the overnight Rule 144A deal. Cendant, a non-retail services company, said it plans to use proceeds to repay its $550 million 3% convertible notes due February 2002, and a portion of a class action suit. Cendant also has a zero-coupon convertible due February 2021 and a zero-coupon convertible due 2021, both rated Baa1/BBB, outstanding.

Terms of the new deal are:

Issuer: Cendant Inc.

Amount: $1 billion

Greenshoe: $200 million

Lead Manager: J.P. Morgan

Maturity Date: November 2011

Coupon: 3.875%

Issue Price: par

Yield: 3.875%

Conversion Premium: 48%

Conversion Price: $24.05

Conversion Ratio: 41.58

Contingent Conversion: 120% trigger

Call: non-callable for three years

Put: in years three and seven

Settlement Date: Nov. 27

End

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