AMERICAN EXPRESS ISSUES NOTICE REGARDING 1.85%
CONVERTIBLE DEBENTURES
NEW YORK, October 07, 2005 -- American Express today announced adjustments related to the 1.85% Convertible Senior Debentures due 2033 of American Express Company issued under the Indenture, dated as of November 21, 2003, between the Company and U.S. Bank National Association, as Trustee.
In accordance with the Indenture, the Base Conversion Rate, the Incremental Share Factor and the Maximum Conversion Rate of the Debentures will be adjusted as a result of the distribution (the “Distribution”) on September 30, 2005 of 100% of the shares of the Company's wholly-owned subsidiary, Ameriprise Financial, Inc. (formerly American Express Financial Corporation) to the Company's shareholders of record as of September 19, 2005 and as a result of the payment of dividends of $0.12 per share in respect of the Company's Common Stock to shareholders of record on each of October 8, 2004, January 7, 2005, April 1, 2005 and July 1, 2005.
After giving effect to the dividend adjustment, the Base Conversion Rate was 14.4289 shares of Common Stock and the Incremental Share Factor was 43.2868 shares of Common Stock.
After giving effect to the dividend adjustment and the Distribution Adjustment and the other adjustments, as applicable, effective since the open of business on October 6, 2005:
- the Base Conversion Rate will be 16.5316 shares
of Common Stock; - the Incremental Share Factor will be 49.5950 shares
of Common Stock; - the Maximum Conversion Rate will be 26.0809 shares
of Common Stock; and - the Dividend Threshold Amount will be $0.09 per share
of Common Stock
American Express Company (www.americanexpress.com), founded in 1850, is a global travel, financial and network services provider.
