In Brief: 3 Million-Share Offer Set for Contifinancial

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.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER