Stilwell to pay upcoming convertible put in cash, offers new notes

New York, March 28 - Stilwell Financial Inc. said it will pay the upcoming put on its convertibles in cash.

The zero-coupon LYONs due 2031 are putable on April 30, 2002 at a price of $748.80 per $1,000 principal amount. If all holders exercise the option, Stilwell said it will have to pay $697 million. Although it has the option to pay the put in cash or stock, Stilwell said Thursday it has notified holders it will use cash.

Holders who wish to exercise the put must notify Stilwell by 5.00 p.m. ET on April 30.

The notes are convertible into 17.1544 shares of Stilwell stock. Stilwell stock closed at $24.49 on Thursday.

The Kansas City, Mo. financial services firm also said it will sell $137.5 million of 7.875% senior notes due 2032 using the Public Income Notes (PINES) structure via lead manager Salomon Smith Barney. The notes will be issued in $25 denominations and the sale has a $20.625 million greenshoe.

Proceeds will be used for general corporate purposes which may include paying the put on the convertibles, Stilwell said.

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