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CompuCredit obtains tenders for $24.77 million of 3.625% convertibles
By Jennifer Chiou
New York, May 17 - CompuCredit Holdings Corp. announced the receipt of tenders from holders of $24,766,000 of its $205.8 million of 3.625% convertible senior notes due 2025 in the modified Dutch auction tender offer for up to $100 million of the notes and its common stock.
The tender offer expired at 11:59 p.m. ET on May 14.
For each $1,000 principal amount of convertibles, tendering holders had to specify a purchase price of $550 to $600. CompuCredit said it expects to accept all tendered notes at a purchase price of $595 per $1,000 principal amount.
The company also offered to purchase shares of its common stock for $7 each, with the amount of shares to be accepted equal to $100 million minus the amount spent to purchase tendered convertibles. The company counted valid tenders for 43,230,986 million of its shares.
Shares are to be accepted on a pro rata basis. That said, CompuCredit said it intends to accept 12,180,604 of the tendered shares. In all, it will spend $85,264,230 for the stock.
At April 14, about 50 million shares of common stock remained outstanding.
The company expected to fund the tender offer with available cash on hand.
The tender offer was not conditioned on any minimum amount of convertibles or shares being tendered.
The information agent was Morrow & Co., LLC (800 607-0088 or, for banks and brokerage firms, 800 662-5200).
If the total purchase price for the tendered convertibles had exceeded $100 million, then the company would have accepted convertibles for purchase on a pro rata basis.
CompuCredit is an Atlanta-based specialty finance company and marketer of branded credit cards and related financial services.
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