Chicago, May 13 – Fluor Corp. sold an upsized offering of $525 million, or 525,000 shares, of par-of-$1,000 convertible perpetual preferred stock on Thursday with a 6.5% dividend and an initial conversion premium of 17.5%, according to a press release.
The issue was talked with a dividend of 6% to 6.5% and an initial conversion premium of 17.5% to 22.5%, according to a market source.
The offer was expected at $450 million.
BofA Securities Inc. and BNP Paribas Securities Corp. are bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $75 million, or 75,000 shares.
The company may force conversion after May 20, 2022 subject to a 130% hurdle. Forced conversions before May 20, 2024 will require payment of a cash make-whole premium.
There is dividend protection via a conversion rate adjustment above $0.00 per quarter.
Proceeds will be used to redeem or repay outstanding debt and for general corporate purposes.
Fluor is an Irving, Tex.-based multinational engineering and construction firm.
| Issuer: | Fluor Corp.
|
| Issue: | Series A 6.5% cumulative perpetual preferred stock
|
| Amount: | $525 million
|
| Greenshoe: | $75 million
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Securities Inc. and BNP Paribas Securities Corp.
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $22.24
|
| Conversion rate: | 44.9585
|
| Call options: | Forced conversion after May 20, 2022 subject to a 130% hurdle. Forced conversions before May 20, 2024 require payment of a cash make-whole premium
|
| Pricing date: | May 13
|
| Settlement date: | May 18
|
| Distribution: | Rule 144A
|
| Price talk: | Dividend of 6% to 6.5%; conversion premium of 17.5% to 22.5%; size of $450 million
|
| Stock symbol: | NYSE: FLR
|
| Stock price: | $23.78 at market close on May 13
|
| Market cap: | $2.68 billion
|
|
|
© 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.
