Conseco announces public offering of Preferred Redeemable Increased Dividend Equity Securities (PRIDES).CARMEL, Ind.--(BUSINESS WIRE)--Jan. 18, 1996 --Conseco, Inc. (NYSE NYSE See: New York Stock Exchange :CNC (Computerized Numerical Control) See numerical control. CNC - Collaborative Networked Communication ) today announced the offering of 3.8 million shares of Preferred Redeemable Increased Dividend Equity Securities (PRIDES) Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". at $61.125 per share. Each share of PRIDES will pay dividends at the annual rate of 7 percent of the stated $61.125 liquidation preference per share (equivalent to an annual amount of $4.279 per share), payable quarterly commencing Feb. 1, 1996. The initial dividend of $.106975 per share for the period from Jan. 23, 1996, through Jan. 31, 1996, will be payable to PRIDES holders of record at the close of business on Jan. 23, 1996. On Feb. 1, 2000, unless either previously redeemed by Conseco or converted at the option of the holder, each share of PRIDES will mandatorily convert into one share of Conseco common stock, subject to adjustment in certain events. 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., Dean Witter Reynolds Dean Witter Reynolds was an American stock brokerage catering to the middle class. In 1997, it merged with the Morgan Stanley Group to form Morgan Stanley Dean Witter. The amalgamated firm is now known as Morgan Stanley. Inc. and Salomon Brothers Inc will manage the offering. Conseco has granted the underwriters an option to purchase up to an additional 570,000 shares of PRIDES to cover over-allotments, if any. Proceeds from the offering of approximately $224.6 million (after underwriting and other associated costs and assuming no exercise of the over-allotment option) will be used to repay bank debt. CONTACT: Conseco, Inc., Carmel Jim Rosensteele, 317/817-2893 |
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