EnerSys to price $150 million 30-year convertibles to yield 3.125%-3.625%, up 37.5%-42.5%

By Rebecca Melvin

New York, May 19 - EnerSys said Monday it plans to price about $150 million of 30-year convertible senior notes in an off-the-shelf deal via joint bookrunners Goldman, Sachs & Co. and Banc of America Securities LLC.

The deal, expected to price on Wednesday, was talked to yield 3.125% to 3.625% with an initial conversion premium of 37.5% to 42.5%, according to a market source.

There is a greenshoe of up to $22.5 million in additional notes.

Concurrently with the note offering, certain stockholders intend to sell 3.4 million shares of EnerSys' common stock, with a greenshoe of 340,000 additional shares. The selling shareholders include Metalmark Capital LLC and other institutional stockholders; and EnerSys will not receive any proceeds from the common stock offering.

The notes are non-callable for seven years, with investor puts in years 2015, 2018, 2023 and 2033.

Proceeds of the note offering are expected to be used to repay a portion of $351.4 million currently outstanding under EnerSys' senior secured term loan B.

Reading, Pa.-based EnerSys makes, markets and distributes reserve and motive power industrial batteries.

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