Service Corp. says $221.6 million 6.75% notes converted ahead of redemption

New York, June 22 - Service Corp. International said holders of $221.6 million of its 6.75% convertible subordinated notes due 2008 exchanged their securities for stock ahead of the redemption.

Service Corp. issued 32.0 million shares of common stock and redeemed the remaining $91.1 million of the convertibles for cash at 103.86% of par.

All holders also received accrued interest of $33.75 per $1,000 principal amount.

The conversion price was $6.92. The company's stock closed at $7.37 Tuesday.

The Houston funeral and cemetery company said the redemption will cut annual interest expense by $21 million.

It funded the $105.1 million spent on the redemption including interest from cash on hand.

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