Nashville, Nov. 20 - Amerada Hess Corp. sold an upsized $600 million of three-year mandatory convertibles at par of 50 to yield 7% with a 24% initial conversion premium via sole bookrunner Goldman Sachs & Co.
The issue, boosted from $500 million, priced at the tight end of yield talk of 7.0% to 7.5% and aggressively outside premium guidance of 18% to 22%.
Holders will have full dividend protection by way of a conversion rate adjustment.
The New York-based oil firm said proceeds would be used for general corporate purposes, including reduction of debt.
Separately, Amerada Hess announced that it has offered to purchase for cash up to $594 million in principal amount of outstanding notes.
Terms of the deal are:
| Issuer: | Amerada Hess Corp.
|
| Issue: | Mandatory convertibles
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| Lead manager: | Goldman Sachs & Co.
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| Amount: | $600 million, upped from $500 million
|
| Greenshoe: | $75 million, unchanged
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| Maturity: | Dec. 1, 2006
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| Dividend: | 7.0%
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| Price: | par, $50
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| Yield: | 7.0%
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| Conversion premium: | 24%
|
| Conversion price: | $60.20
|
| Conversion ratio: | 0.8306
|
| Call: | Non-callable
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| Price talk: | 7.0-7.5%, up 18-22%
|
| Pricing date: | Nov. 19, after the close
|
| Settlement date: | Nov. 26
|
| Distribution: | Registered
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