FPL $500 million mandatory convertibles talked at 8.25-8.75% yield, up 18-22%

By Ronda Fears

Nashville, Tenn., Jan. 28 - FPL Group Inc. launched $500 million of three-year mandatory convertibles with price talk for a yield of 8.25% to 8.75% with an initial conversion premium of 12% to 16%. JPMorgan and Lehman Brothers are joint lead managers of the deal, which is scheduled to price after the close Tuesday.

The issue will be non-callable.

The Florida utility holding company said it would add the proceeds to its general funds to use to repay some of its commercial paper issued to fund investments power projects. FPL shares closed off 48c to $55.55.

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