New Issue: Financial Federal upsized $150 million convertible yields 2.0%, up 32.5%

Nashville, April 6 - Financial Federal Corp. sold an upsized $150 million of 30-year convertible senior notes at par to yield 2.0% with a 32.5% initial conversion premium via joint bookrunners Banc of America Securities and J.P. Morgan.

The Rule 144A deal, which was upped from $115 million, priced at the middle of guidance for a 1.75% to 2.25% coupon and a 30% to 35% initial conversion premium.

Holders will have full dividend protection.

New York-based Financial Federal, which finances industrial and commercial equipment sales and leasing, plans to use up to $50 million of proceeds to buy back stock concurrently with the note offering, then to provide funds to its operating subsidiary, Financial Federal Credit Inc., for repayment of debt and working capital.

Terms of the deal are:

Issuer:	Financial Federal Corp.
Issue:	Convertible senior notes
Lead managers:	Banc of America Securities and J.P. Morgan
Amount:	$150 million, up from $115 million
Greenshoe:	$25 million, up from $10 million
Maturity:	April 15, 2034
Coupon:	2.0%
Price:	Par
Yield:	2.0%
Conversion premium:	32.5%
Conversion price:	$44.10
Conversion ratio:	22.6778
Contingent conversion:	130%
Contingent payment:	120%
Call:	Non-callable for 5 years
Put:	In years 5, 10, 15, 20 and 25 in cash/stock
Ratings:	Fitch: BBB
Price talk:	1.75-2.25%, up 30-35%
Pricing date:	April 5, after the close
Settlement date:	April 12
Distribution:	Rule 144A

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