Compaq Computer Corp has announced that it will be retiring the debt securities of Digital Equipment Corp, in connection with its acquisition of the company. Compaq says it’s initiated cash tender offers and solicitations of consents for DEC’s $250m 7.125% notes due October 15, 2002, $250m 8.625% debentures due November 1, 2012, and $250m 7.75% debentures due April 1, 2023. Compaq is initiating the action to save money on interest payments and to retain debt free. The purchase price to be paid for each of the securities will be based on the yield of US Treasury notes with comparable maturity dates. The cash tender offers will terminate on June 25 and is subject to various conditions, including the consummation of the acquisition and the valid consent by at least a majority of the holders of the securities.
