By Kenneth Lim
Boston, Sept. 7 - Alliant Techsystems Inc. on Wednesday priced $270 million of five-year convertible senior subordinated notes within talk, at a coupon of 2.75% and an initial conversion premium of 24%.
The notes were offered at par and priced after the market closed. Price talk was for a coupon of 2.5% to 3% and an initial conversion premium of 20% to 25%.
There is an over-allotment option for a further $30 million.
Bank of America was the bookrunner for the Rule 144A offering.
The initial conversion rate is 10.3617 shares per note, or an initial conversion price of $96.51 per share.
The convertibles are non-callable, and there are no puts.
There is a contingent conversion hurdle at 130% of the conversion price.
The convertibles have dividend and takeover protection.
Alliant, an Edina, Minn.-based defense contractor, said it will use the proceeds to buy back $100 million of its own stock, to contribute to its defined benefit pension plan and for other general purposes. The company is also entering into convertible note hedge and warrant transactions.
| Issuer: | Alliant Techsystems Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | Bank of America
|
| Amount: | $270 million
|
| Greenshoe: | $30 million
|
| Maturity: | Sept. 15, 2011
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 24%
|
| Conversion price: | $96.51
|
| Conversion ratio: | 10.3617
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable for life
|
| Puts: | None
|
| Price talk: | 2.5%-3%, up 20%-25%
|
| Pricing date: | Sept. 6 after the close
|
| Settlement date: | Sept. 12
|
| Guarantees: | DRS Technologies
|
| Distribution: | Rule 144A
|
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