WMC Finance buys all 11¾% notes in tender offer

New York, June 18 - WMC Finance Co. said it completed its tender offer, buying all its outstanding 11¾% senior notes due 2008.

The offer expired at 5 p.m. ET on June 17.

WMC on June 15 said it will pay $1,228.96 per $1,000 principal amount of its 11¾% senior notes.

Holders who tendered notes with consents by 5 p.m. ET on June 3 will receive an additional $20 per $1,000 consent payment.

All tendering holders will also receive accrued and unpaid interest.

WMC said it fixed the price at 2 p.m. ET on Tuesday using a fixed spread over the yield of the 2.25% U.S. Treasury note due Feb. 15, 2007.

WMC said on June 4 it had received the required consents to proposed indenture changes from the holders of its 11¾% notes.

As of the previously announced consent deadline, which expired as scheduled at 5 p.m. ET on June 3, without extension, holders of 100% of the outstanding notes had tendered them and delivered the related consents, sufficient to enact the proposed indenture amendments.

The company said it will proceed to execute a supplemental indenture incorporating the proposed amendments to the indenture governing the notes and an amendment to the registration rights agreement. The supplemental indenture and the amendment to the registration rights agreement will become operative only if the WMC accepts the notes for payment.

As previously announced, WMC Finance, a Woodland Hills, Calif., alternative mortgage company, said on May 19 that it had begun a cash tender offer and consent solicitation for all of its outstanding 11¾% notes.

It set a now-expired consent deadline of 5 p.m. ET on June 3 and said the tender would end at 5 p.m. ET on June 17, subject to possible extension. The company said the pricing for the tender will be set on the second business day before the expiration of the offer. It did not announce the formula that will be used.

WMC said it was also soliciting consents to amend the notes' indenture to eliminate substantially all the restrictive covenants and certain events of default and to eliminate the obligations of WMC to register the notes under the related registration rights agreement.

The company said the offer would be subject to conditions including the receipt of consents from holders of at least a majority of the outstanding principal amount of the notes and the completion of the pending acquisition of WMC by General Electric Capital Corp.

Credit Suisse First Boston LLC is dealer manager and solicitation agent for the offer at (800 820-1653 or collect at 212 538-0652). Georgeson Shareholder Communications Inc. is the information agent (800 733-0805 or collect at 212 440-9800).

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