NEW YORK Cendant Corp. has agreed to sell $800 million of zero-coupon, zero-yield convertible senior notes due 2021 in a private offering resulting in gross proceeds of approximately $800 million. The initial purchaser will also have a 30-day option to purchase up to an additional $200 million of notes to cover over-allotments.
The notes will be convertible into shares of Cendant common stock at a price per share of $25.59 if the closing price of Cendant s shares on the NYSE fails to exceed specified levels. The conversion price represents a 41% conversion premium on the April 27 NYSE closing price of $18.15 for Cendant common shares. At the time of conversion, each $1,000 principal amount at maturity note will be convertible into 39.0755 shares of Cendant common stock. The notes will not be redeemable by Cendant prior to May 2004. (4/30/01)