PMI Group says holders tender 95% of 2.5% convertible debentures in exchange

By Laura Lutz

Des Moines, Aug. 17 - The PMI Group, Inc. received tenders for approximately 95% of its outstanding 2.5% senior convertible debentures due 2021, according to preliminary results of its exchange offer ended Aug. 16.

Holders elected to exchange $341.678 million of the $359.892 million existing debentures for an equal amount of the company's new 2.5% senior convertible debentures due 2021 and an exchange fee of $3.50 for each $1,000 principal amount of existing debentures.

The new notes will have an added net share settlement feature that allows PMI to pay for a portion of any conversion in cash.

The new debentures also require puts to be paid in cash and in some cases allow holders to decide the form of payment for a change of control.

The offer was announced July 3.

The final results will be announced upon final confirmation of the amount of existing debentures properly tendered. The company said it expects to settle the exchange on Aug. 22.

The PMI Group is a Walnut Creek, Calif.-based provider of credit enhancement products.

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