Continental Grain Co. will offer almost three million shares of Contifinancial Corp. stock in a structured-yield deal.
Contifinancial, parent of ContiMortgage, is 75%-owned by Continental Grain. After the offering, Continental Grain's stake in Contifinancial could go down to 70%.
Merrill Lynch & Co. will package the deal as a structured yield product exchangeable for stock, or STRYPES, which after three years is exchangeable for shares of Contifinancial, or the cash equivalent.
Contifinancial will get no proceeds from the transaction.