By Sara Rosenberg
New York, June 19 - The Chubb Corp. priced a $400 million mandatory convertible at 25 to yield 7% with an initial conversion premium of 20%.
The deal came at the cheap end of yield talk and the middle of premium talk. Guidance was for a yield of 6.5% to 7.0% with an 18% to 22% initial conversion premium.
Citigroup, Goldman Sachs & Co. and Merrill Lynch & Co. were joint bookrunners of the deal, which priced after market hours on Wednesday.
The 3.2-year issue is non-callable.
The convertible was sold concurrently with a common stock follow-on sale for another $800 million through the issuance of 2.025 million shares at $59.50.
There is a $60 million greenshoe available on the mandatory offering.
The Warren, N.J.-based property and casualty insurance holding company will use proceeds for general corporate purposes.
Terms of the new deal are:
| Issuer: | The Chubb Corp.
|
| Issue: | Equity units made up of senior notes and purchase contracts
|
| Amount: | $400 million
|
| Greenshoe: | $60 million
|
| Bookrunners: | Citigroup, Goldman Sachs & Co. and Merrill Lynch & Co.
|
| Maturity: | Aug. 16, 2006
|
| Coupon: | 7%
|
| Issue price: | Par of $25
|
| Yield: | 7%
|
| Conversion premium: | 20%
|
| Conversion price: | $71.40/$59.50
|
| Conversion ratio: | 0.35/0.42
|
| Pricing date: | June 18 after close
|
| Settlement: | June 24
|
| Distribution: | Off shelf
|
|
|
© 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.
