By Rebecca Melvin
New York, Dec. 16 - Technitrol Inc. priced $50 million five-year convertible senior notes at par to yield 7% with an initial conversion premium of 18%, according to a news release.
The deal was done in a private offering under Section 4(2) of the Securities Act of 1933. However the notes will be eligible for resale under Rule 144A, the release said.
Trading sources said the paper was not seen in trade on its debut and that it was probably sold to very few holders and will not be active in secondary dealings.
Holders of the notes may convert each $1,000 principal amount of notes at any time into 156.6465 shares of Technitrol common stock, subject to customary anti-dilution adjustments.
Proceeds will be used to repay a portion of its debt under an existing revolving credit facility.
In connection with the offering of the notes, Technitrol expects to enter into an amendment to its senior secured credit facility to permit the issuance of the notes at closing.
The offering is expected to close by Dec. 22, subject to satisfying closing conditions.
Based in Philadelphia, Technitrol is a producer of electronic components, electrical contacts and assemblies and other precision-engineered parts.
| Issuer: | Technitrol Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $50 million
|
| Maturity: | Dec. 15, 2014
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion premium: | 18%
|
| Conversion ratio: | 156.6465
|
| Pricing date: | Dec. 16
|
| Settlement date: | Dec. 22
|
| Distribution: | Section 4(2), Rule 144A
|
| Stock listing: | NYSE: TNL
|
| Stock reference: | $5.41
|
| Market capitalization: | $184.12 million
|
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