Chicago, June 17 – Allegheny Technologies Inc. priced an upsized offering of $285 million of five-year convertible notes after the market close on Wednesday with a 3.5% coupon and an initial conversion premium of 45%, according to a market source and a press release.
The notes were talked to yield 3% to 3.5%, with an initial conversion premium from 40% to 45%.
J.P. Morgan Securities LLC (lead left), Citigroup Global Markets Inc. and Wells Fargo Securities LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $40 million.
The notes are non-callable for three-years and then subject to a 130% hurdle.
There is standard takeover and dividend protection.
The notes will be settled in cash, shares or a combination of both at the company’s option.
In connection with the offering, the company will enter into capped call transactions.
Proceeds will be used to cover the cost of the call spread and to repurchase a portion of the company’s 4.75% convertible notes due 2022.
Remaining proceeds will be used for general corporate purposes.
Allegheny Technologies is a Pittsburgh-based specialty metals company.
| Issuer: | Allegheny Technologies Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $285 million, upsized from $250 million
|
| Greenshoe: | $40 million, upsized from $37.5 million
|
| Maturity: | June 15, 2025
|
| Bookrunners: | J.P. Morgan Securities LLC (lead left), Citigroup Global Markets Inc. and Wells Fargo Securities LLC
|
| Coupon: | 3.5%
|
| Conversion premium: | 45%
|
| Conversion price: | $15.49
|
| Conversion ratio: | 64.5745
|
| Calls: | After June 15, 2023, subject to a 130% hurdle
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | June 17
|
| Settlement date: | June 22
|
| Distribution: | Rule 144A
|
| Price talk: | 3%-3.5% yield, up 40%-45%
|
| Stock symbol: | NYSE: ATI
|
| Stock price: | $10.68 at close June 17
|
| Market capitalization: | $1.35 billion
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
