Alliant Energy greenshoe ups 3.875% convertibles $575 million

By William Gullotti

Buffalo, N.Y., March 13 – Underwriters for Alliant Energy Corp.’s 3.875% three-year convertible notes (BBB+) exercised their $75 million greenshoe, lifting the total deal size to $575 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, Alliant priced $500 million of the three-year convertible notes after the market close on March 2 at par at the cheap end of talk with a coupon of 3.875% and an initial conversion premium of 25%

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 were the bookrunners for the Rule 144A offering.

The notes are non-callable, however they are putable upon a fundamental change.

The initial conversion rate is 15.5461 shares of common stock per $1,000 principal amount of notes, which represents an initial conversion price of $64.32 per share of common stock.

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.

With the greenshoe fully exercised, net proceeds will be $564.6 million and 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.

© 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.