By Kenneth Lim
Boston, May 10 - Alesco Financial Inc. priced an upsized $115 million of 20-year convertible senior notes within talk on Wednesday to yield 7.625% with an initial conversion premium of 22.5%.
The convertibles were offered at par. The deal was talked at a coupon of 7.375% to 7.875% and an initial conversion premium of 20% to 25%.
The size of the deal was originally $75 million with an over-allotment option for a further $11.25 million. The greenshoe is now $25 million.
RBC Capital Markets was the bookrunner of the Rule 144A offering.
The convertibles are non-callable for the first five years. They may be put in years five, 10 and 15.
There is a contingent conversion trigger at 130% of the conversion price.
The convertibles have dividend and takeover protection.
There is a net-share settlement feature.
Alesco, a Philadelphia-based real estate investment trust, said it will use $32.1 million of the proceeds to concurrently buy back its common stock at $9.55 per share. It will also partly repay its outstanding debt and fund additional investments.
| Issuer: | Alesco Financial Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | RBC Capital Markets
|
| Amount: | $115 million
|
| Greenshoe: | $25 million
|
| Maturity: | May 15, 2027
|
| Coupon: | 7.625%
|
| Price: | Par
|
| Yield: | 7.625%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $11.70
|
| Conversion ratio: | 85.4701
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before May 20, 2012
|
| Puts: | May 15, 2012; May 15, 2017; May 15, 2022
|
| Price talk: | 7.375%-7.875%, up 20%-25%
|
| Pricing date: | May 9, after the close
|
| Settlement date: | May 15
|
| Distribution: | Rule 144A
|
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