Fidelity National to sell $300 million seven-year convertibles at 3.75%-4.25%, up 32.5%-37.5%

By Rebecca Melvin

New York, July 27 - Fidelity National Financial Inc. plans to price $300 million of seven-year convertible senior notes (Baa3) after the market close on Wednesday that were talked to yield 3.75% to 4.25% with an initial conversion premium of 32.5% to 37.5%, according to market sources.

The Rule 144A deal has an over-allotment option for up to an additional $45 million of notes and is being sold via joint bookrunners Bank of America Merrill Lynch and J.P. Morgan Securities LLC. Co-managers are Wells Fargo Securities LLC, USBC, Stephens and Jefferies & Co.

The notes are non-callable and have no puts. There is takeover protection and net share settlement.

Proceeds will be used to repay debt, for share repurchases and for general corporate purposes.

A portion of the proceeds and concurrent borrowings under Fidelity's revolving credit facility will be used to repurchase up to $75 million of common stock to acquire shares potentially being sold as part of hedging transactions with certain investors in the notes.

Fidelity National is a Jacksonville, Fla.-based insurance holding company.

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