SAN FRANCISCO, March 17 /PRNewswire-FirstCall/ -- Providian Financial
Corporation (NYSE: PVN) today announced that it has agreed to sell
$250,000,000 in original principal amount of its 2-3/4% Convertible Cash to
Accreting Senior Notes due March 15, 2016 through Citigroup Global Markets
Inc., Goldman, Sachs & Co. and Morgan Stanley & Co. as joint book-running
managers and JPMorgan and Deutsche Bank Securities as co-managers. Providian
may also sell up to an additional $37,500,000 original principal amount of the
notes upon exercise of an over allotment option granted to the underwriters in
connection with the offering. The offering is expected to close on
March 19, 2004.
The notes will bear interest at the rate of 2-3/4% per annum until
March 11, 2011 and thereafter the notes will bear cash interest at the rate of
1-3/4% per annum, with the principal amount accreting after March 11, 2011 to
provide a 2-3/4% aggregate annual yield-to-maturity (computed on a semiannual
bond equivalent yield basis from March 15, 2011, after giving cash interest
effect to paid but excluding contingent interest, if any). The Notes will be
convertible into shares of Providian Financial's common stock upon the
achievement of a predetermined stock price or the satisfaction of other
conditions at an initial conversion rate of 58.7941 shares of common stock for
each $1,000 principal amount of Notes that are converted (equivalent to a
conversion price of approximately $17.01 per share).
A copy of the prospectus can be obtained from Citigroup Global Markets
Inc., Brooklyn Army Terminal, 140 58th Street, Brooklyn, NY 11220, Attn:
Prospectus Department, from Goldman, Sachs & Co. at 85 Broad Street, New York,
NY 10004, or from Morgan Stanley & Co. Incorporated, 1585 Broadway, New York,
NY 10036, Attn: Prospectus Department.
About Providian
San Francisco-based Providian Financial (http://www.providian.com) is a leading
provider of credit cards and deposit products to customers throughout the U.S.
By combining experience, analysis, technology, and outstanding customer
service, Providian seeks to build long-lasting relationships with its
customers by providing products and services that meet their evolving
financial needs.
SOURCE Providian Financial Corporation
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Related links:
http://www.providian.com
CONTACT:
investors, Jack Carsky, +1-415-278-4977, or
media, Alan Elias, +1-415-278-4189, both for Providian Financial
Corporation
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