Convertibles Calendar

JAN. 3 WEEK:

ATHEROGENICS INC. (Symbol: AGIX): Rule 144A; $125 million of seven-year, non-callable convertible notes; $25 million greenshoe; price talk for 1.5% to 2.0% coupon, 30% to 35% initial conversion premium; full dividend and takeover protection; Atlanta-based biotech firm focused on chronic inflammatory diseases such as clogged arteries to use proceeds to fund ongoing costs of the ARISE trial of AGI-1067, other research and development, process development and manufacturing support, and general corporate purposes, including working capital; via bookrunner Morgan Stanley; co-managers are Lehman Brothers, JPMorgan and Lazard; scheduled to price after the market close Thursday.

JAN. 17 WEEK:

CELANESE CORP.: $200 million perpetual convertible preferred, par $25; price talk for 4.0% to 4.5% dividend, 18% to 22% initial conversion premium; non-callable for five years, then with a 130% hurdle for life; added to initial public offering of 57.5 million shares of series A common stock, including greenshoe, in a range of $19 to $21 a share; also plans new $1.5 billion senior credit facility; proceeds to partially redeem 10% senior discount notes, partially redeem 10.3675% senior subordinated notes, repay existing $611 million senior credit facility, repay $350 million floating-rate term loan and $952 million dividend to series B common stock holders; joint lead managers are Morgan Stanley and Lehman Brothers; co-managers are Banc of America Securities, UBS Investment Bank, Deutsche Bank Securities and Credit Suisse First Boston; roadshow scheduled Jan. 6 in London, Jan. 7 in Frankfurt and Milan, Jan. 10 in the Mid-Atlantic U.S., Jan. 11 and 12 in New York, Jan. 13 in Boston, Jan. 14 in Kansas City and Texas, Jan. 18 in San Francisco, Jan. 19 in Los Angeles and Jan. 20 in Minneapolis and Chicago; pricing slated Jan. 20.

ON THE HORIZON

FORTIS/ASSURANT INC.: Rule 144A; mandatory exchangeable three-year bonds, convertible into roughly 23 million shares of Assurant; Fortis also selling its remaining 27.2 million share stake in Assurant, estimated to fetch $822.8 million; bookrunner is Morgan Stanley; timing uncertain.

PNM RESOURCES INC. (Symbol: PNM): $200 million of equity-linked securities as part of financing package for $1.024 billion acquisition of TNP Enterprises Inc.; timing to coincide with acquisition closing 9 to 12 months from announcement on July 25; letter of intent obtained for the purchase of $100 million of the equity-linked securities from an existing shareholder; Albuquerque, N.M., electric utility also plans to issue $250 million of common equity, of which $95 million will go to TNP Enterprises shareholders, and place $100 million of long-term senior notes; expected ratings BBB/Baa2.

© 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.