Neuberger Berman adds put, cash payments to convertibles

New York, May 1 - Neuberger Berman Inc. announced incentives to encourage holders of its zero-coupon senior convertible notes due 2021 not to exercise the upcoming put option.

The New York investment advisor said it is adding an additional put to the notes, allowing holders to require Neuberger to repurchase them on Nov. 4, 2002 at their accreted value of $870.67 per $1,000 principal amount. The new put will be payable in cash, stock or a combination.

In addition, Neuberger Berman will make a one-time cash payment to noteholders who do not exercise the upcoming put. The payment will be $4.34 per $1,000 principal amount at maturity, equivalent to 0.50% of the accreted value. Neuberger will make the payment as soon as possible after May 7.

The announcement of the modifications to the convertibles comes ahead of a put option exercise date. The notes are putable to Neuberger on May 4 at $867.42. The company has already announced it will pay the put in cash.

There are also puts at accreted value on May 4, 2004, 2006, 2011 and 2016.

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