Cendant Corporation (NYSE:CD) today announced that it prepaid its $375 million mandatorily redeemable debt securities on September 5, 2003. These securities, which were redeemable by the holder in 2015, were also redeemable at Cendant’s option. The Company did not pay any premiums or pre-payment penalties in connection with the redemption of these securities.
“As previously announced, Cendant will continue to deploy its cash primarily to reduce corporate debt, to repurchase common stock and, beginning in first quarter 2004, to pay a quarterly cash dividend on its common shares,” said Cendant`s Chief Financial Officer, Ronald L. Nelson. “The early repayment of $375 million of debt securities reflects the Company`s commitment to reduce its debt by approximately $2 billion over the course of 2003 and 2004.”