Conseco Inc. (NYSE:CNO) has bought back $64 million of its old 3.50% convertible debentures through a privately negotiated transaction, the company says.
The debentures were due Sept. 30, 2035.
The purchase price for the $64 million in old debentures was equal to 100% of the principal amount plus accrued and unpaid interest, according to Conseco, Carmel, Ind.
Conseco says it has replaced the old debentures by issuing $64 million in new convertible senior debentures that will pay 7%. Those debentures are due in 2016.
Conseco previously completed the issuance of $176.5 million in new debentures in November 2009, after settling a tender offer for older debentures.
Conseco says it expects to recognize a $2 million loss in connection with the new debenture repurchase. The loss represents the write-off of the unamortized discount and issuance costs associated with the old debentures that were repurchased.
Conseco still has a total of $52.5 million of the old debentures remain outstanding.
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