Five Star to price $80 million 20-year convertibles Thursday, talked at 3.75%-4.25%, up 22.5%-27.5%

By Kenneth Lim

Boston, Oct. 12 - Five Star Quality Care Inc. planned to price Thursday after the market closed $80 million of 20-year convertible senior unsecured notes, talked at a coupon of 3.75% to 4.25% and an initial conversion premium of 22.5% to 27.5%.

The convertibles were offered at par.

There is a greenshoe for a further $12 million.

UBS was the bookrunner of the Rule 144A offering.

The convertibles are non-callable for the first five years, and there are puts in years seven, 10 and 15.

The notes have dividend protection, and a change-of-control put with a premium make-whole feature.

Five Star, a Newton, Mass.-based nursing home and senior living community operator, said the proceeds of the deal will be used for general purposes, including possible future acquisitions.

© 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.