By Abigail W. Adams
Portland, Me., Feb. 28 – Alliant Energy Corp. priced $500 million of three-year convertible notes (BBB+) after the market close on Monday at par at the cheap end of talk with a coupon of 3.875% and an initial conversion premium of 25%, according to a company news release and a market source.
Price talk was for a coupon of 3.375% to 3.875% and an initial conversion premium of 25% to 30%.
J.P. Morgan Securities LLC, BofA Securities Inc. and Goldman Sachs & Co. LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $75 million.
The notes are non-callable.
They are putable upon a fundamental change.
There will be a make-whole adjustment premium delivered upon conversion as incremental shares if certain fundamental changes occur.
There is dividend protection above $0.4525 per quarter via a conversion rate adjustment.
The notes will be settled in cash up to the principal amount with the remainder to be settled in cash, shares or a combination of both at the company’s option.
Net proceeds are expected to be $490.9 million or will be $564.6 million if the greenshoe is exercised in full.
Proceeds will be used for general corporate purposes, which may include the repayment or refinancing of debt, acquisition expenditures, investments and repurchases or redemptions of securities.
Alliant Energy is a Madison, Wis.-based public utility holding company.
| Issuer: | Alliant Energy Corp.
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Issue: | Convertible senior notes
|
| Maturity: | March 15, 2026
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc. and Goldman Sachs & Co. LLC
|
| Coupon: | 3.875%
|
| Price: | Par
|
| Yield: | 3.875%
|
| Conversion premium: | 25%
|
| Conversion price: | $64.32
|
| Conversion rate: | 15.5461
|
| Call options: | Non-callable
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 2
|
| Rating: | S&P: BBB+
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 3.375% to 3.875% and initial conversion premium of 25% to 30%
|
| Stock symbol: | Nasdaq: LNT
|
| Stock price: | $51.46 at market close Feb. 27
|
| Market capitalization: | $12.92 billion
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