By Rebecca Melvin
New York, June 30 -Alliance One International, Inc. priced $100 million of five-year convertible senior notes late Monday at par to yield 5.5% with an initial conversion premium of 20%, according to a news release.
The Rule 144A deal came at the cheap end of talk, which was for a yield of 5% to 5.5% and an initial conversion premium of 20% to 25%. Pricing was postponed until Monday after the market close from Thursday after the market close.
There is a greenshoe of up to an additional $15 million of convertibles.
Credit Suisse Securities, Deutsche Bank Securities Inc. and Goldman Sachs & Co. were joint bookrunners.
The notes are non-callable, and there are no puts except for a fundamental change.
Alliance One also priced $570 million of seven-year senior subordinated notes on Friday.
Net proceeds of the convertible deal and a portion of proceeds from the straight notes will be used to repurchase outstanding debt due 2011 to 2013, to fund convertible note hedge transactions, to repay a $305 million senior secured credit facility and for other general corporate purposes.
Alliance One has also entered into warrant transactions, which have a strike price of $7.3325, and represent an initial conversion premium of 75% from the company's perspective.
Alliance One is a Morrisville, N.C.-based leaf tobacco merchant.
| Issuer: | Alliance One International Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | July 15, 2014
|
| Bookrunners: | Credit Suisse Securities, Deutsche Bank Securities Inc. and Goldman Sachs & Co.
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 20%
|
| Conversion price: | $5.0280
|
| Conversion ratio: | 198.8862
|
| Price talk: | 5%-5.5%, up 20% to 25%
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Pricing date: | June 29
|
| Settlement date: | July 2
|
| Distribution: | Rule 144A
|
| Listing: | NYSE
|
| Stock symbol: | AOI
|
| Stock price: | $4.19
|
| Market capitalization: | $372.8 million
|
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