Nashville, Dec. 12 - Apogent Technologies Inc. sold $300 million of 30-year convertible floating-rate notes, on swap, at par to yield three-month Libor minus 125 basis points with a 42% initial conversion premium. Banc of America Securities and Lehman Brothers were joint bookrunners.
The Rule 144A deal priced at the middle of guidance of three-month Libor minus 100 to 150 basis points, up 40% to 44%.
Holders will have full dividend protection.
The Portsmouth, N.H.-based medical supply company said it would use $70 million of proceeds to repurchase its common shares concurrently with the offering.
Remaining proceeds will be used to pay down a portion of its revolving credit facility and for general corporate purposes.
Terms of the deal are:
| Issuer: | Apogent Technologies Inc.
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| Issue: | Convertible senior floating-rate notes
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| Bookrunners: | Banc of America Securities and Lehman Brothers
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| Joint lead managers: | JPMorgan and Credit Suisse First Boston
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| Amount: | $300 million
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| Greenshoe: | $45 million
|
| Maturity: | Dec. 15, 2033
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| Coupon: | 3-month Libor minus 125 bps
|
| Price: | Par
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| Yield: | 3-month Libor minus 125 bps
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| Conversion premium: | 42%
|
| Conversion price: | $33.09
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| Conversion ratio: | 30.2206
|
| Call: | Non-callable for 6.25 years
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| Put: | In years 5, 6.25, 11, 16, 21 and 26
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| Contingent conversion: | 130%
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| Contingent payment: | 120%
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| Price talk: | 3-month Libor minus 100-150 bps, up 40-44%
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| Pricing date: | Dec. 11, after the close
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| Settlement date: | Dec. 17
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| Distribution: | Rule 144A
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