Allegheny Technologies to sell $250 million six-year convertibles to yield 4.25%-4.75%, up 25%-30%

By Rebecca Melvin

New York, May 17 – Allegheny Technologies Inc. plans to price $250 million of six-year convertible senior notes talked to yield 4.25% to 4.75% with a 25% to 30% initial conversion premium, according to market sources.

The registered, off-the-shelf deal, which is expected to price after the market close on Wednesday, has a $37.5 million greenshoe and is being sold via joint bookrunners Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch.

The notes are non-callable with no puts and have takeover and dividend protection.

Proceeds are earmarked for general corporate purposes, which may include voluntary or required contributions to the company’s defined benefit pension trust, or the repurchase, repayment or refinancing of debt.

Allegheny is a Pittsburgh-based specialty steel maker.

© 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.