Nashville, Dec. 17 - Fleetwood Enterprises Inc. sold $80 million of 20-year convertible notes at par to yield 5.0% with a 27% initial conversion premium via bookrunner Lehman Brothers.
The Rule 144A deal, which priced a day ahead of schedule, was sold at the aggressive end of yield talk of 5.0% to 5.5% and aggressively outside premium guidance of 20% to 24%.
A $20 million greenshoe is available.
The Riverside, Calif.-based manufactured housing and recreational vehicle sales company will use proceeds to repurchase or redeem a portion of its 6% and 9.5% convertible trust preferreds.
Terms of the deal are:
| Issuer: | Fleetwood Enterprises Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | Lehman Brothers
|
| Amount: | $80 million
|
| Greenshoe: | $20 million
|
| Maturity: | Dec. 15, 2023
|
| Coupon: | 5.0%
|
| Price: | Par
|
| Yield: | 5.0%
|
| Conversion premium: | 27%
|
| Conversion price: | $11.76
|
| Conversion ratio: | 85.034
|
| Call: | Non-callable for 5 years
|
| Put: | In years 5, 10 and 15
|
| Contingent conversion: | 120%
|
| Expected ratings: | Moody's: B2
|
| S&P: BB-
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| Price talk: | 5.0-5.5%, up 20-24%
|
| Pricing date: | Dec. 16, after the close
|
| Settlement date: | Dec. 22
|
| Distribution: | Rule 144A
|
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