Alliant Tech $250 million convertible talked at 2.5-3.0% yield, up 37.5-42.5%

Nashville, Feb. 11 - Alliant Techsystems Inc. launched $250 million of 20-year convertible notes talked to yield 2.5% to 3.0% with a 37.5% to 42.5% initial conversion premium for pricing after the close Thursday.

Banc of America Securities is sole bookrunner of the Rule 144A deal, which was being sold on swap as the company earmarked up to $75 million of proceeds to buy back stock alongside the note offering.

The senior subordinated notes will be non-callable for five years with puts in years five, 10 and 15.

There is a $30 million greenshoe available.

After the stock repurchases, Minneapolis-based Alliant Techsystems said remaining proceeds would be used to further its intended acquisition of Mission Research Corp., and for general corporate purposes.

Alliant Techsystems is a supplier of aerospace and government defense products and a supplier of ammunition to federal and local law enforcement agencies and commercial markets.

Alliant shares closed Wednesday down $1.37, or 2.33%, to $57.38.

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