By Evan Weinberger
New York, July 25 - Evergreen Energy Inc. priced $95 million in convertible senior notes due Aug. 1, 2012 with an initial 8% coupon and a 40% initial conversion premium Wednesday before market open.
Credit Suisse is the bookrunner of the Rule 144A transaction.
The conversion price is $5.25 and the conversion ratio is 190.4762.
The coupon will decrease by 300 basis points if Evergreen common stock trades at the conversion price or higher for 20 trading days in any 30 consecutive trading day period. If the Evergreen common stock trades at 130% of the conversion price for 20 days in a 30 day trading period, the convertibles will be released and notes will become subordinated.
The convertibles are callable at any time subject to a 130% hurdle. There are no puts.
Evergreen Energy, based in Denver, refines coal into a cleaner solid fuel. The company intends to use the proceeds to fund capital expenditures and operations at its Fort Union plant and for general corporate purposes.
Issuer: Evergreen Energy Inc.
Issue: Convertible senior notes
Amount: $95 million
Maturity: Aug. 1, 2012
Coupon: 8%, subject to 300 bps drop if stock trades at conversion price for 20 days in 30 day trading period
Price: Par
Yield: 8%
Conversion premium: 40%
| Conversion price: | $5.25
|
| Conversion ratio: | 190.4762
|
| Call: | Anytime, subject to 130% hurdle
|
| Put: | No
|
| Pricing date: | July 24, after close
|
| Bookrunner: | Credit Suisse
|
| Distribution: | Rule 144A
|
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