Conseco looking to extend maturities one to 2½ years on $2.54 billion of bonds

New York, March 18 - Conseco, Inc. announced an exchange offer to extend maturities by one to 2½ years on $2.54 billion of its bonds.

The Carmel, Ind. insurance company is offering to qualified institutional investors new securities that have the same coupon and same principal amount as the existing bonds but maturity dates that are one to 2½ years later than at present. In exchange, the new notes will have a more senior ranking in the company's capital structure.

Conseco is making the exchange offer in an effort to improve its financial flexibility and enhance its future ability to refinance public debt, according to New Conseco Memo #21 from chairman and chief executive officer Gary Wendt.

The exchange is as follows (all notes will be exchanged at the rate of $1,000 principal of new notes for $1,000 principal of existing notes):

--8.5% guaranteed senior notes due October 2003 for its $302.299 million existing 8.5% senior notes due October 2002;

--6.4% guaranteed senior notes due February 2004 for its $250 million existing 6.4% senior notes due February 2003;

--8.75% guaranteed senior notes due August 2006 for its $788 million existing 8.75% senior notes due February 2004;

--6.8% guaranteed senior notes due June 2007 for its $250 million existing 6.8% senior notes due June 2005;

--9% guaranteed senior notes due April 2008 for its $550 million existing 9% senior notes due October 2006;

--10.75% guaranteed senior notes due June 2009 for its $400 million existing 10.75% senior notes due June 2008.

The notes will be guaranteed on a senior subordinated basis by CIHC, Inc. the holding company Conseco's principal operating subsidiaries, including its insurance and finance units.

Conseco said the exchange offer is subject to consents from its bank lenders.

The exchange runs through midnight ET on April 12.

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