Glendale Federal Amends Exchange Offer for Notes

Glendale Federal Bank said it amended its exchange offer for its publicly traded notes due in 1997.

The bank, a subsidiary of Glenfed Inc. in Glendale, had originally offered to exchange the notes for a new series of preferred stock and warrants to buy common stock. Under the amended exchange offer, the bank is offering warrants to the note holders representing 2.5% of the bank’s outstanding common stock--if between 85% and 90% of the notes are tendered--and up to 5% of the common stock if more than 90% of the notes are tendered.

Additional amendments deal with limiting the bank’s ability to redeem the notes before 1995, increasing the percentage of note holders required to cause a default and eliminating restrictions on the bank’s ability to take on additional debt ranked equally with the notes.

Glendale Federal, which is trying to avoid government seizure, said the exchange offer is critical to its restructuring. It said that more than 80% of the note holders have expressed approval of the amended exchange offer.