Investor Buys Endocare Debt Securities

Endocare Inc., a developer of cryosurgical technologies that treat cancer, said Wednesday that an institutional investor has purchased an additional $8 million worth of the company’s convertible debt securities.

Endocare said in a press release that Brown Simpson Partners I Ltd. had invested the same amount last year to buy debt securities, eventually converting $5 million worth of the debt into Endocare stock at $5.13 a share.

The partnership exercised its option May 4 to buy the additional debt, which carries a 7% interest rate and is due to be repaid in May 2003. The shares are convertible at $6.75 a share, an amount that was 30% above Endocare’s stock price at the time the option was granted a year ago.

Endocare’s stock closed at $13.63 a share, down $1.75 Wednesday.

In a separate transaction, Endocare increased its borrowing capacity to $5 million from $3 million with its lender, Transamerica Corp.’s Transamerica Technology Finance unit.