By Rebecca Melvin
New York, May 22 - EnerSys priced $150 million of 30-year convertible senior notes to yield 3.375% with an initial conversion premium of 40%, according to a company release.
The notes priced at the midpoint of talk.
Concurrent with the note offering, stockholders, including Metalmark Capital LLC and other institutional stockholders, priced $98.6 million of common stock. EnerSys does not receive any proceeds from this offering.
The registered convertible deal was sold via joint bookrunners Goldman, Sachs & Co. and Banc of America Securities LLC, with Wachovia Capital and PNC Capital acting ac co-managers.
There is a greenshoe of $22.5 million in additional notes.
The notes are non-callable for seven years, with investor puts in years 2015, 2018, 2023 and 2033.
EnerSys will pay 40 basis points of contingent interest if a 130% hurdle is breached.
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.
| Issuer: | EnerSys
|
| Issue: | Convertible senior notes
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | June 1, 2038
|
| Coupon: | 3.375%
|
| Price: | Par
|
| Yield: | 3.375%
|
| Conversion premium: | 40%
|
| Conversion ratio: | 24.6305
|
| Conversion price: | $40.60
|
| Contingent payment: | 130%
|
| Call: | From June 6, 2015 at par
|
| Puts: | June 1 of 2015, 2018, 2023 and 2033
|
| Takeover protection: | Yes
|
| Bookrunners: | Goldman Sachs and Banc of America, with Wachovia and PNC as co-managers
|
| Price talk: | 3.125%-3.625%, up 37.5%-42.5%
|
| Pricing date: | May 21
|
| Settlement: | May 28
|
| Distribution: | Off shelf
|
| Stock symbol: | NYSE: ENS
|
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