Nashville, Aug. 9 - Alliant Techsystems Inc. sold $180 million of 20-year contingent convertible senior subordinated notes at par to yield 3.0% with a 37.5% initial conversion premium after a one-day marketing effort. Sole bookrunner was Banc of America Securities.
The Rule 144A deal priced at the middle of guidance that put the coupon at 2.75% to 3.25% and initial conversion premium between 35% and 40%.
There is full dividend protection via a conversion ratio adjustment and cash takeover protection in the way of a premium make-whole provision.
Alliant Tech, a $2.4 billion advanced weapon and space systems company, said proceeds would be used toward its planned acquisition of PSI Group, which is expected to close for an undisclosed amount by the end of August. Closely-held PSI Group, which provides next-generation global positioning, navigation and communication satellites to the U.S. military, has annual revenues of approximately $100 million.
Terms of the deal are:
| Issuer: | Alliant Techsystems Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | Banc of America Securities
|
| Amount: | $180 million
|
| Greenshoe: | $20 million
|
| Maturity: | Aug. 15, 2024
|
| Coupon: | 3.0%
|
| Price: | Par
|
| Yield: | 3.0%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $79.4613
|
| Conversion ratio: | 12.5392
|
| Contingent conversion: | 130%
|
| Contingent payment: | 120%
|
| Dividend protection: | Yes
|
| Cash takeover protection: | Yes
|
| Call: | Non-callable for 10 years
|
| Put: | In years 10 and 15
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Price talk: | 2.75-3.25%, up 35-40%
|
| Pricing date: | Aug. 9, after the close
|
| Settlement date: | Aug. 13
|
| Distribution: | Rule 144A
|
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