By Rebecca Melvin
New York, May 14 - Cash America International Inc. priced $100 million of 20-year convertibles after the close of markets Wednesday - a day ahead of schedule - to yield 5.25%, with an initial conversion premium of 27.5%, according to an origination source.
There is a $15 million greenshoe.
The Rule 144A offering priced at the aggressive end of talk for the coupon, which was 5.25% to 5.75%, and beyond the aggressive end of talk for the initial conversion premium, which was 20% to 25%.
The deal was originally supposed to price Thursday after the close.
Jefferies & Co. was bookrunner of the notes, with JMP Securities acting as co-manager. It was Jefferies' first convertibles deal of the year.
The bonds will be non-callable for five years, with investor puts in years 2014, 2019 and 2024.
There is takeover and dividend protection.
Proceeds are expected to be used to repay indebtedness under the company's U.S. revolving credit facility, with any remainder used for general corporate purposes.
Fort Worth, Tex.-based Cash America is an owner and operator of pawnshops in the U.S. and Mexico.
| Issuer: | Cash America International Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $100 million
|
| Maturity: | May 15, 2029
|
| Greenshoe: | $15 million
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $25.50
|
| Conversion ratio: | 39.2157
|
| Price talk: | 5.25%-5.75%, up 20%-25%
|
| Call: | Non callable for five years until May 15, 2014
|
| Puts: | In years 2014, 2019, 2024
|
| Bookrunner: | Jefferies & Co., with JMP Securities as co-manager
|
| Pricing date: | May 13
|
| Settlement: | May 19
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: CSH
|
| Market capitalization: | $580.13 million
|
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