Per-Se Technologies to pay principal of 3.25% convertibles in cash

New York, Nov. 3 - Per-Se Technologies Inc. said it has committed to pay the principal amount of its 3.25% subordinated contingent convertible debentures due 2024 in cash in response to new accounting rules.

As a result of the decision, the convertibles will not be dilutive until the company's average stock price exceeds the conversion price of $17.85.

Under the terms of the convertibles, Per-Se had the right to pay the principal in cash and has now exercised that option. Amounts above the principal will be paid in stock.

The convertibles, issued in June, have a 130% contingent conversion trigger.

Per-Se's announcement was in response to new rules on accounting for contingent convertibles announced by the Financial Accounting Standards Board. These require contingent convertibles to be treated as if they have been converted to stock for the purposes of earnings per share calculations, regardless of whether the contingent trigger is hit.

Per-Se is an Alpharetta, Ga., provider of administrative services to healthcare providers.

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