MF Global ups price, extends tender for $210 million 9% convertibles

By Jennifer Chiou

New York, March 12 - MF Global Ltd. said it raised the purchase price and extended the cash tender offer to purchase any and all of its $210 million of 9% convertible senior notes due 2038.

The company said it will now pay $640, up from $620, per $1,000 principal amount of the notes plus accrued interest up to the payment date.

As already reported, MF Global plans to fund the purchase from available cash, which was recently augmented by $250 million in excess regulatory capital distributed to the company by one of its regulated subsidiaries.

The tender offer will expire at midnight ET on March 25, extended from March 23. It began on Feb. 24.

The tender offer is not conditioned upon any minimum principal amount of notes being tendered.

The company also said that the 21-day average closing price of MF stock as of Feb. 24 and as of March 11 was about $3.45 and $4.11 per share, respectively.

J.P. Morgan Securities Inc. (800 261-5767) is dealer manager. Georgeson Inc. is the information agent, and U.S. Bank NA (800 945-4689) is the depositary.

The company previously said that if all of the notes are tendered, MF Global's interest expense will decline by about $19 million per year on a GAAP basis.

Hamilton, Bermuda-based MF Global is a broker of exchange-listed futures and options.

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