Aames again extends exchange for convertibles

New York, Nov. 22 - Aames Financial Corp. again extended its exchange offer to refinance its outstanding 5.5% convertible subordinated debentures due 2006.

The offer for the convertibles will now expire at 5.00 p.m. ET on Dec. 3, pushed back from 5.00 p.m. ET on Nov. 22. It had originally been set to expire at 5.00 p.m. on June 13.

Aames said so far it has received tenders from holders of $42.9 million of the existing convertibles, the same as at its last announcement on Nov. 7. The figure is 37.6% of the amount outstanding.

Aames also said the Supreme Court of the State of New York on Oct. 25 granted its motion to dismiss an action brought by Wilmington Trust Co., the trustee for its 9.125% senior notes due 2003, seeking to prevent completion of the exchange offer but that the trustee has now filed an appeal.

The Los Angeles consumer finance company is offering holders $800 principal amount of new 4% convertible subordinated debentures due 2012 for each $1,000 principal amount of the existing securities. The new securities will be convertible at any time on the same terms as the old ones.

The new debentures will have a sinking fund, requiring Ames to redeem 30% of the outstanding principal amount on Dec. 15, 2002.

There will also be a change-of-control clause giving the company the option to redeem the convertibles. They will also be redeemable if Ames' 9.125% senior notes due 2003 are repaid in full or if the note indenture is modified to permit redemption.

Redemptions will be at 33.5% of the principal amount if ahead of the Dec. 15, 2002 sinking fund payment or 5% of their principal amount after that time.

Ames said the offer applies to all its existing $113.9 million of 5.5% convertibles. If all are tenders, it will issue $91.12 million of the new convertibles.

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