BAA to redeem 4.875% convertibles

New York, Aug. 11 - BAA plc said it will redeem its 4.875% convertible bonds due 2004 on Sept. 19.

The London-based airport operator said it will pay par plus accrued interest for the securities.

Protection One buys back $8.4 million convertibles

New York, Aug. 11 - Protection One, Inc. said it bought back $8.4 million of its 6¾% convertible senior subordinated notes due September 2003 during June.

The Topeka, Kan. company bought back the securities at face value using available cash.

The repurchase left $1.3 million principal amount of the securities outstanding, according to a filing with the Securities and Exchange Commission.

Counsel starts tender for 6% convertibles

New York, Aug. 11 - Counsel Corp. announced a tender offer for all its 6% convertible unsecured subordinated debentures due Oct. 31, 2003.

The Toronto communications and real estate company is offering US$750 plus 100 common share purchase warrants for each US$1,000 principal amount of the convertibles plus accrued interest.

Counsel will pay up to US$7,661,438 of the amount it is offering in the tender in cash and the remainder in new notes. Holders can choose cash, notes or a combination. The cash amount will be pro rated if necessary. The new notes will be unsecured, mature on Oct. 31, 2006 and pay 8% interest. Principal will be payable in three equal installments on Oct. 31, 2004, 2005 and at maturity.

The warrants will be exercisable at C$4.60 per share.

Counsel said that its offer is a 15.4% premium to the convertibles' US$650 closing price on the Toronto Stock Exchange on Aug. 8, excluding the value of the warrants.

The company currently has US$40.861 million of the convertibles outstanding.

Counsel may, at its option, pay the principal of the convertibles at maturity in stock.

The offer is being carried out to give holders cash and/or short-term debt as an alternative to receiving stock and to provide then with the opportunity to participate in potential upside through the exercise of warrants, the company said.

In addition to the tender, Counsel is seeking consents to amend the convertibles' indentures to give it the right to deliver at redemption or maturity US$750 principal amount of new notes and 100 common share purchase warrants at maturity and to reduce the minimum notice period required for redemption to at least 10 days from at least 30 days.

BMO Nesbitt Burns is financial advisor for the offer.

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