New Issue: WMC Finance downsized $200 million five-year notes yield 11¾%

By Paul A. Harris

St. Louis, Dec. 11 - WMC Finance Co. priced a downsized issue of $200 million of five-year senior notes (B2/B-) Thursday at par to yield 11¾%, a syndicate source said.

The offering, which matures Dec. 15, 2008, was reduced from an originally planned $250 million.

Price talk was in the 11% area.

Credit Suisse First Boston and Merrill Lynch & Co. ran the books on the Rule 144A deal. Lehman Brothers was the co-manager.

The Woodland Hills, Calif.-based online mortgage lender plans to use proceeds to fund a dividend payment and for general corporate purposes.

Issuer:	WMC Finance Co.
Amount:	$200 million
Maturity:	Dec. 15, 2008
Security description:	Senior notes
Bookrunners:	Credit Suisse First Boston, Merrill Lynch & Co.
Co-manager:	Lehman Brothers
Coupon:	11¾%
Price:	Par
Yield:	11¾%
Spread:	855 basis points
Call features:	Callable after Dec. 15, 2006 at 105.875, 102.938, par on Dec. 15, 2007 and thereafter
Equity clawback:	Until Dec. 15, 2006 at 111.75 for up to 40%
Settlement date:	Dec. 16, 2003 (T+3)
Ratings:	Moody's: B2
	Standard & Poor's: B-
Rule 144A Cusip:	97750XAA3
Price talk:	11% area

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