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Washington Mutual says $28.953 million 2¾% convertibles tendered
By E. Janene Geiss
Philadelphia, Nov. 3 - Washington Mutual, Inc. said $28.953 million principal amount of the 2¾% convertible cash-to-accreting senior notes due 2016 of its subsidiary New American Capital, Inc. were validly tendered before the Wednesday deadline in its cash tender offer for the securities.
The notes were originally issued by Providian Financial Corp. and were assumed by New American when it acquired Meridian on Oct. 1.
For the 2¾% convertibles, New American paid $1,000 per $1,000 original principal amount plus accrued interest up to but excluding the repurchase date. It also paid a make-whole premium of $212.06, which will be paid by delivery of 5.0169 shares of Washington Mutual common stock and $23.3264 in cash for each $1,000 original principal amount of notes. Cash will be paid in lieu of any fractional shares at a value of $38.3870 per share.
The offer for the 2¾% convertibles expired at midnight ET on Wednesday.
Two other tender offers - for the zero-coupon convertible notes due 2021 and 4% convertible senior notes due 2008 - are continuing.
For the zero-coupon convertibles, the tender price is the accreted value, expected to be $547.08 per $1,000 principal amount at maturity. If all are tendered, New American will pay $476.73 million. The deadline is 5 p.m. ET on Nov. 21.
For the 4% convertibles, New American is offering par plus accrued interest up to but excluding the repurchase date. If all are tendered, New American will pay $245.35 million. The deadline is 5 p.m. ET on Nov. 4.
The tender offers, announced Oct. 5, were required under the change-of-control provisions in the note indentures.
J.P. Morgan Trust Co., NA is paying and information agent (800 275-2048).
Washington Mutual is a Seattle-based financial services retailer.
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