Filed pursuant to Rule No. 424(b)(3)
File number 333-83334
PROSPECTUS SUPPLEMENT NO. 1
(To Prospectus dated March 15, 2002)
$1,200,000,000
CENDANT CORPORATION
3 7/8% Convertible Senior Debentures due 2011
and shares of CD common stock issuable upon conversion of the debentures
This prospectus supplement supplements the prospectus dated March 15,
2002 of Cendant Corporation relating to the sale by certain of our
securityholders (including their pledges, donees, assignees, transferees,
successors and others who later hold any of the selling securityholders'
interests) of up to $1,200,000,000 aggregate principal amount at maturity of
debentures and the shares of CD common stock issuable upon conversion of the
debentures. You should read this prospectus supplement in conjunction with the
prospectus, and this prospectus supplement is qualified by reference to the
prospectus, except to the extent that the information in this prospectus
supplement supersedes the information contained in the prospectus.
The table of selling securityholders contained in the prospectus is
hereby amended to add the entities who are named below as selling
securityholders:
Aggregate Number of
Principal Amount Shares of CD Percentage of
at Maturity of Percentage of Common Stock Shares of CD
Debentures That Debentures That May Common Stock
Name May Be Sold Outstanding Be Sold(1) Outstanding(2)
---- ---------------- ------------- ------------ --------------
BGI Global Investors c/o Forest Investment
Mngt L.L.C. . . . . . . . . . . . . . . $298,000 * 12,391 *
Conseco Annuity Assurance--Multi Bucket
Annuity Convertible Bond Fund . . . . . $3,250,000 * 135,135 *
Conseco Fund Group--Convertible Securities
Fund . . . . . . . . . . . . . . . . . . . $250,000 * 10,395 *
Employee's Retirement of N.O. Sewer/Water
Board . . . . . . . . . . . . . . . . . . $800,000 * 33,264 *
Forest Alternative Strategies II . . . . . . $91,000 * 3,784 *
Forest Fulcrum Fund L.L.P. . . . . . . . . . $1,309,000 * 54,428 *
Forest Global Convertible Fund Series A-5 . $4,836,000 * 201,081 *
Koch Industries Inc. Master Pension Fund . . $460,000 * 19,127 *
Midwest Family Mutual Insurance Company $130,000 * 5,405 *
MLQA Convertible Securities
Arbitrage, Ltd. . . . . . . . . . . . . $15,000,000 1.250% 623,700 *
Relay II Holdings c/o Forest Investment
Mngt L.L.C. . . . . . . . . . . . . . . $172,000 * 7,152 *
Sylvan (IMA) Ltd. C/o Forest Investment
Mngt L.L.C. . . . . . . . . . . . . . . $738,000 * 30,686 *
Tempo Master Fund L.P. . . . . . . . . . . . $8,000,000 * 332,640 *
The Philanthropic Pension . . . . . . . . . $170,000 * 7,069 *
Worldwide Transactions Ltd. . . . . . . . . $760,000 * 31,601 *
Zazove Hedged Convertible Fund, L.P. . . . . $3,250,000 * 135,135 *
Zurich Master Hedge Fund c/o Forest
Investment Mngt L.L.C. . . . . . . . . . . $697,000 * 28,981 *
Additionally, the following represents updated information regarding
the selling securityholders listed in the selling securityholder table in the
prospectus:
Aggregate Number of
Principal Amount Shares of CD Percentage of
at Maturity of Percentage of Common Stock Shares of CD
Debentures That Debentures That May Common Stock
Name May Be Sold Outstanding Be Sold(1) Outstanding(2)
---- --------------- ------------- ------------ ---------------
Black Diamond Convertible Offshore LDC . $3,893,000 * 161,871 *
Chrysler Corporation Master
Retirement Trust . . . . . . . . . . . . . $5,510,000 * 229,106 *
Delta Air Lines Master Trust . . . . . . . . $1,430,000 * 59,459 *
Delta Pilots D&S Trust . . . . . . . . . . . $700,000 * 29,106 *
Double Black Diamond Offshore LDC . . . . . $17,493,000 1.458% 727,359 *
Eagle Pacific Insurance Company . . . . . . $230,000 * 9,563 *
Goldman Sachs and Company . . . . . . . . . $29,360,000 2.447% 1,220,789
Gulf Investment Corporation . . . . . . . . $200,000 * 8,316 *
Lyxor Master Fund . . . . . . . . . . . . . $1,526,000 * 63,451 *
Michigan Mutual Insurance Company . . . . . $900,000 * 37,422 *
Microsoft Corporation . . . . . . . . . . . $1,835,000 * 76,299 *
Motion Picture Industry Health Plan--Retiree
Member Fund . . . . . . . . . . . . . . . $205,000 * 8,524 *
Newport Investments, Inc. . . . . . . . . . $3,500,000 * 145,530 *
OCM Convertible Trust . . . . . . . . . . . $3,070,000 * 127,651 *
Partner Reinsurance Company Ltd. . . . . . $885,000 * 36,798 *
Qwest Occupational Health Trust . . . . . . $185,000 * 7,692 *
State of Connecticut Combined Investment
Funds . . . . . . . . . . . . . . . . . . $4,320,000 * 179,626 *
Zazove Convertible Securities Fund Inc. . . $940,000 * 39,085 *
Zurich Institutional Benchmarks Master
Fund Ltd. . . . . . . . . . . . . . . . . $2,500,000 * 103,950 *
- -----------
* Less than one percent (1%).
(1) Assumes conversion of all of the holder's debentures at a
conversion rate of 41.58 shares of CD common stock per $1,000
principal amount of the debentures. This conversion rate is
subject to adjustment, however, as described under "Description of
Debentures--Conversion Rights". As a result, the number of shares
of CD common stock issuable upon conversion of the debentures may
increase or decrease in the future. Does not include shares of CD
common stock that may be issued by us upon purchase of the
debentures by us at the option of the holder.
(2) Calculated based on Rule 13d-3(d)(i) of the Exchange Act, using
982,020,341 shares of CD common stock outstanding as of March 15,
2002. In calculating this amount for each holder, we treated as
outstanding the number of shares of CD common stock issuable upon
conversion of all of that holder's debentures, but we did not assume
conversion of any other holder's debentures. Does not include shares
of CD common stock that may be issued by us upon purchase of the
debentures by us at the option of the holder.
Investing in the debentures or shares of CD common stock involves
risks that are described in the "Risk Factors" section beginning on page 14 of
the prospectus.
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these securities or
determined if this prospectus supplement is truthful or complete. Any
representation to the contrary is a criminal offense.
The date of this prospectus supplement
is April 15, 2002.
