By Kenneth Lim
Boston, Dec. 12 - Acquicor Technology Inc. on Tuesday priced an upsized $145 million of five-year convertible senior notes at the rich end of talk, at a coupon of 8% and an initial conversion premium of 30%.
The notes were offered at par and were talked at a coupon of 8% to 8.5% and an initial conversion premium of 25% to 30%.
The original size of the offering was $100 million. The over-allotment option was increased from an additional $15 million to an additional $21.75 million.
CRT Capital Group was the bookrunner for the Rule 144A offering.
The convertibles are non-callable for the first three years. There are no puts.
The convertibles have takeover protection.
There is a net-share settlement feature.
Acquicor is a Newport Beach, Calif.-based blank-check company formed to acquire technology businesses. It is buying specialty wafer maker Jazz Semiconductor for $260 million and will use the proceeds of the offering to help fund the acquisition. The proceeds will be placed in an escrow account pending approval of the acquisition by shareholders. If the merger is not approved by May 31, 2007, the notes will be redeemed at par.
Issuer: | Acquicor Technology Inc.
|
Issue: | Convertible senior notes
|
Bookrunner: | CRT Capital Group
|
Amount: | $145 million
|
Greenshoe: | $21.75 million
|
Maturity: | Dec. 31, 2011
|
Coupon: | 8%
|
Price: | Par
|
Yield: | 8%
|
Conversion premium: | 30%
|
Conversion price: | $7.33
|
Conversion ratio: | 136.4256
|
Net-share settlement option: | Yes
|
Takeover protection: | Yes
|
Call protection: | Non-callable before Dec. 31, 2009
|
Puts: | None
|
Price talk: | 8%-8.5%, up 25%-30%
|
Pricing date: | Dec. 12, before the open
|
Settlement date: | Dec. 15
|
Distribution: | Rule 144A
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.