CompuCredit starts Dutch auction tender for up to $160 million 3.625%, 5.875% convertible notes

By Jennifer Chiou

New York, Jan. 28 - CompuCredit Holdings Corp. announced the launch of a modified Dutch auction tender offer for up to $160 million total of its $230.5 million of 3.625% convertible senior notes due 2025 and its $156 million of 5.875% convertible senior notes due 2035.

The notes are listed in order of priority acceptance level.

The company plans to fund the offer with available cash on hand.

Under the auction procedure, CompuCredit is offering to purchase the 3.625% notes at a price not greater than $500 nor less than $460 per $1,000 principal amount while the range for the 5.875% notes is between $310 and $350 per $1,000 principal amount. The company will accept bids in multiples of $0.50.

Holders will receive accrued interest.

The company noted that only validly tendered securities at prices at or below the purchase price range will be purchased.

CompuCredit said it is possible that no 5.875% convertibles will be purchased.

The offer ends at 11:59 p.m. ET on Feb. 25.

It is conditioned on tenders from holders of at least $80 million of the 3.625% notes.

Questions may be directed to the information agent (866 952-2200 or call collect 212 430-3774). UBS Securities LLC is the dealer manager (888 719-4210 or call collect 203 719-4210). The depositary is U.S. Bank NA.

Atlanta-based CompuCredit is a specialty finance company and marketer of branded credit cards and related financial services.

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