Cendant Redeems Substantially All Of Its Zero-Coupons Convertible Debentures

Cendant Corporation (NYSE: CD) today announced that holders of its Zero-Coupon Convertible Debentures due May 2021 have exercised their rights to “put” $394 million, or 98%, of the debentures outstanding to Cendant at par. The redemptions were fully anticipated and were funded with cash on hand.

Cendant`s Chairman, President and CEO, Henry R. Silverman stated: “This debt repayment is another significant step in our commitment to deploy our cash to reduce corporate debt.Ê We continue to expect to reduce our corporate debt, net of cash on the balance sheet, by $1 billion during 2003.”

As previously announced, pursuant to an amendment to the terms of the debentures, the final cash interest payment under the debentures became payable today to holders of record on April 4, 2003, regardless of whether such holder exercised its “put” right .Ê Such interest payment accrued at a rate equal to 3% per annum and was payable semi-annually.