By Ronda Fears
Nashville, Tenn., March 20 - Airborne Inc. sold an upsized $125 million of five-year convertible senior notes at par to yield 5.75% with a 24% initial conversion premium. Goldman Sachs & Co. was lead manager of the Rule 144A deal, which sold at the aggressive end of price talk that had been tightened before pricing. The deal was boosted from $100 million.
Revised price talk put the yield at 5.75% and initial conversion premium at 20% to 24%, versus original talk of 6.0% to 6.5% yield and an 18% to 22% premium. Seattle-based Airborne said it would use proceeds to repay the Airborne Express Inc. $100 million of 8.875% notes due Dec. 15, 2002.
Terms of the new deal are:
Issuer: Airborne Inc.
Amount: $125 million
Greenshoe: $25 million
Lead Manager: Goldman Sachs
Maturity Date: March 30, 2007
Coupon: 5.75%
Issue Price: par
Yield: 5.75%
Conversion Premium: 24%
Conversion Price: $23.386
Conversion Ratio: 42.76
Call: non-callable for three years, then at 101.438
Expected Rating(s): Moody's: Ba3
| S&P: BBB-
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| Settlement Date: | March 26
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