Alliant Techsystems sets purchase price in tender for 3% convertibles

By Jennifer Chiou

New York, June 25 – Alliant Techsystems Inc. announced the pricing terms of its cash tender offer for any and all of its $195,951,000 of 3% convertible senior subordinated notes due Aug. 15, 2024.

According to an 8-K filing with the Securities and Exchange Commission, the company is offering $1,790.64 per $1,000 principal amount of notes, plus accrued interest.

The purchase price was determined using the sum of (i) the average volume-weighted average price of $136.1569 multiplied by 13.1023 plus (ii) an amount equal to the amount of interest that would accrue from and including the settlement date to but excluding Aug. 20, plus (iii) a fixed cash amount of $2.50.

The offer will end at midnight ET on June 27.

In addition to the tender offer and in connection with a dividend Alliant has declared and will pay to holders of its outstanding common stock, the company intends to make a payment to each noteholder of record as of June 2. This payment will be an amount equal to the per-share amount of the dividend multiplied by 13.1023 so that noteholders will effectively participate in the dividend without conversion of their notes.

As a result of this payment, no anti-dilution adjustment to the conversion rate of the notes will be made, the filing stated.

BofA Merrill Lynch is the dealer manager (888 292-0070). Global Bondholder Services Corp. is the depositary (866 470-4200 or call collect 212 430-3774).

Arlington, Va.-based Alliant Techsystems is an aerospace, defense and commercial products company.

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