Cendant Announces Public Offering of Feline Prides and Trust Preferred Securities Aggregating $1.3 Billion.PARSIPPANY, N.J./STAMFORD, Conn.--(BUSINESS WIRE)--February 25, 1998--Cendant Corporation (NYSE NYSE See: New York Stock Exchange : CD) today announced the public offering of 26 million FELINE PRIDES (SM), consisting of 24 million Income PRIDES and 2 million Growth PRIDES, each with a face amount of $50 per PRIDE. The Income PRIDES consist of trust preferred securities and stock purchase contracts under which the holders will purchase common stock from Cendant in February of 2001. The Growth PRIDES consist of stock purchase contracts under which the holders will purchase common stock from Cendant in February of 2001 and zero coupon U.S. Treasury securities U.S. Treasury securities Interest-bearing obligations if the U.S. government issued by the U.S. Department of the Treasury as a means of borrowing money to meet government expenditures not covered by tax revenues. . The Company also will issue 2 million separately traded trust preferred securities. Proceeds from the offering will be used primarily to reduce outstanding indebtedness and for other general corporate purposes. Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. and Chase Securities Inc. are underwriting the offering. Cendant has granted the underwriters an option to purchase up to an additional $195 million of FELINE PRIDES (SM) and trust preferred securities to cover over allotments, if any. The trust preferred securities will bear interest at the annual rate of 6.45 percent, and the forward purchase contract forming a part of the Income PRIDE will pay 1.05 percent annually in the form of a contract adjustment payment. The forward purchase contract forming a part of the Growth PRIDE will pay 1.3 percent annually in the form of a contract adjustment payment. The forward purchase contracts call for the holder to purchase the minimum of 1.0395 shares and a maximum of 1.3514 shares of Cendant common stock per PRIDES security, depending upon the average of the closing price per share of Cendant common stock for a 20 consecutive trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. period ending in mid-February of 2001. This represents a maximum common stock purchase price of $48.10 per share or a 30% premium to the $37.00 closing price of Cendant common stock on February 24, 1998. Cendant has received a rating on the trust preferred securities of "a3" from Moody's Investors Services Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. and "A-" from Duff & Phelps Credit Rating Co. Cendant anticipates a rating of "A-" on the trust preferred securities from Standard & Poor's. This announcement is neither an offer to sell nor a solicitation of an offer to buy such securities. The offering is made by prospectus only. Copies of the final prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. supplement are available through the Prospectus Department of Merrill Lynch & Co., World Financial Center, North Tower, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , N.Y. 10281, telephone 212-449-8415. Cendant (NYSE: CD) is the world's premier provider of consumer and business services. With a market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. in excess of $30 billion, it ranks among the 100 largest U.S. corporations. Cendant operates in three principal segments: Membership, Travel and Real Estate Services. In Membership Services, Cendant provides access to travel, shopping, auto, dining, and other services through more than 66.5 million memberships worldwide. In Travel Services, Cendant is the leading franchisor of hotels and rental car agencies worldwide, the premier provider of vacation exchange services and the second largest fleet management company. In Real Estate Services, Cendant is the world's premier franchisor of residential real estate brokerage offices, a major provider of mortgage services to consumers and a global leader in corporate employee relocation. Headquartered in Stamford, CT and Parsippany, NJ, the company has more than 35,000 employees, operates in over 100 countries and makes approximately 100 million customer contacts annually. CONTACT: Investor Contact: Laura P. Hamilton Senior Vice President Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. and Investor Relations Investor relations The process by which the corporation communicates with its investors. 203/965-5114 or Media Contact: Elliot Bloom Vice President Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most 973/496-8414 or Jim Fingeroth/Roanne Kulakoff Kekst and Company 212/521-4800 |
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