Alliance One International talks $100 million five-year convertibles to yield 5%-5.5%, up 20%-25%

By Rebecca Melvin

New York, June 25 - Price talk emerged on Alliance One International, Inc.'s $100 million convertibles offering - first announced Monday - for a coupon of 5% to 5.5% and an initial conversion premium of 20% to 25%. Pricing was also postponed until Monday after the market close from Thursday after the market close.

Alliance One plans to price five-year senior subordinated notes via bookrunners Credit Suisse Securities, Deutsche Bank Securities Inc. and Goldman Sachs & Co. in a Rule 144A offering. There is an over-allotment option for an additional $15 million.

Alliance One is concurrently offering $600 million of seven-year senior notes.

Proceeds of both deals will be used to finance a cash tender offer for outstanding debt due 2011 to 2013, to fund convertible note hedge transactions, to repay a $305 million senior secured credit facility and for other general corporate purposes.

Alliance One is a Morrisville, N.C.-based leaf tobacco merchant.

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