New Issue: Allen Telecom $50 million convertible preferred yield 7.75%, up 10%

By Ronda Fears

Nashville, Tenn., March 15 - Allen Telecom Inc. sold $50 million of 12-year convertible preferreds at par of 50 to yield 7.75% with a 10% initial conversion premium. Bear Stearns & Co. was lead manager of the deal. Beachwood, Ohio-based Allen Telecom, a wireless telecom equipment provider, will use proceeds to repay bank debt and for working capital.

Terms of the new deal are:

Issuer: Allen Telecom Inc.

Amount: $50 million

Greenshoe: $7.5 million

Lead Manager: Bear Stearns

Maturity Date: Feb. 15, 2014

Dividend: 7.75%

Issue Price: par, $50

Yield: 7.75%

Conversion Premium: 10%

Conversion Price: $7.70

Conversion Ratio: 6.4935

Call: non-callable for three years, then with 125% hurdle

Settlement Date: March 20

© 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.