By Angela McDaniels
Tacoma, Wash., May 18 – Allegheny Technologies Inc. priced $250 million of 4.75% six-year convertible senior notes at par with a 25% initial conversion premium after the market close on Wednesday, according to a company news release.
The deal has a $37.5 million over-allotment option.
The convertibles were talked to yield 4.25% to 4.75% with a 25% to 30% initial conversion premium, according to market sources.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch are the joint bookrunners for the registered, off-the-shelf deal.
The convertibles 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.
| Issuer: | Allegheny Technologies Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $250 million
|
| Greenshoe: | $37.5 million
|
| Maturity: | July 1, 2022
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Coupon: | 4.75%
|
| Price: | Par
|
| Yield: | 4.75%
|
| Conversion premium: | 25%
|
| Conversion price: | $14.45
|
| Conversion ratio: | 69.2042
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | May 18
|
| Distribution: | Off the shelf
|
| Price talk: | 4.25%-4.75% yield, up 25%-30%
|
| Stock symbol: | NYSE: ATI
|
| Stock price: | $11.56 at close May 18
|
| Market capitalization: | $1.26 billion
|
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