Conseco Raises Number Of Shares

In Proposed Offering

Conseco Inc., Carmel, Ind., has filed an amendment to a Jan. 29, 2004, registration statement with the Securities and Exchange Commission that increases the size of proposed securities offerings to $1.15 billion or 44 million shares of common stock and $575 million or 20 million shares of mandatorily convertible preferred stock. The amounts are exclusive of the underwriters overallotment option of 6.6 million shares.

The company says these shares are in addition to 100.1 million shares of common stock currently outstanding. Total shares after the new issuance and including the overallotment would be 150.7 million. The 100.1 million shares, according to the filing, do not include 59.6 million in shares tied to stock options and existing preferred shares.

In the Jan. 29, 2004, filing, Conseco originally applied for an $800 million common stock offering and a $350 million offering in mandatorily convertible preferred stock.

Conseco says it intends to use the net proceeds to redeem all outstanding shares of our class A preferred stock, to repay indebtedness under its existing senior credit facility, to contribute capital to its insurance subsidiaries and for general corporate purposes.


Reproduced from National Underwriter Edition, April 16, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.