New Issue: Alliant Tech $250 million convertible yields 2.75%, up 40%

Nashville, Feb. 12 - Alliant Techsystems Inc. sold $250 million of 20-year convertible notes at par to yield 2.75% with a 40% initial conversion premium via sole bookrunner Banc of America Securities.

The Rule 144A deal, sold on swap with $75 million of proceeds earmarked to buy back stock alongside the note offering, priced at the middle of guidance of 2.5% to 3.0%, up 37.5% to 42.5%.

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.

Terms of the deal are:

Issuer:	Alliant Techsystems Inc.
Issue:	Convertible senior subordinated notes
Bookrunner:	Banc of America Securities
Amount:	$250 million
Greenshoe:	$30 million
Maturity:	Feb. 15, 2024
Coupon:	2.75%
Price:	Par
Yield:	2.75%
Conversion premium:	40%
Conversion price:	$79.464
Conversion ratio:	12.5843
Contingent payment:	120%
Call:	Non-callable for 5 years
Put:	In years 5, 10 and 15
Price talk:	2.5-3.0%, up 37.5-42.5%
Pricing date:	Feb. 12, after the close
Settlement date:	Feb. 19
Distribution:	Rule 144A

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