By Rebecca Melvin
New York, April 2 - Alaska Communications Systems Group Inc. priced an upsized $110 million of five-year convertibles with a coupon of 5.75% and an initial conversion premium of 10%, according to a syndicate source.
There is a greenshoe of $15 million. Originally, the deal size was expected to be up to $100 million of notes, with a $15 million greenshoe.
The senior unsecured notes priced toward the cheap end of talk for the coupon, which was 5.35% to 5.85%, and at the cheap end for the initial conversion premium, which was 10% to 15%.
Banc of America Securities and Oppenheimer were joint bookrunners of the Rule144A deal.
The notes are non-callable and there are no puts. They also have standard dividend and takeover protection.
The Anchorage, Alaska, communications company plans to use proceeds to complete financing of its Akorn fiber construction project and other capital expenditures.
The company also plans to enter into convertible note hedge transactions and warrant transactions.
| Issuer: | Alaska Communications Systems Group Inc
|
| Issue: | Convertible senior unsecured notes
|
| Amount: | $110 million, upsized from $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | March 1, 2013
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Yield: | 5.75%
|
| Conversion premium: | 10%
|
| Conversion price: | $12.90
|
| Price talk: | 5.35% to 5.85%, up 10% and 15%
|
| Call: | Non callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Bookrunner: | Bank of America and Oppenheimer
|
| Pricing date: | April 2
|
| Settlement: | April 8
|
| Distribution: | Rule 144A
|
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