By Kenneth Lim
Boston, April 13 - Franklin Bank Corp. priced $100 million of 20-year convertible senior notes after the close Thursday at the cheap end of talk to yield 4% with an initial conversion premium of 40.127%.
The convertibles were offered at par. They were talked at a coupon of 3.5% to 4% and an initial conversion premium of 40% to 45%.
There is no over-allotment option.
RBC Capital Markets was the bookrunner of the registered offering.
The convertibles are non-callable for the first five years and may be put in years five, 10 and 15.
There is a contingent conversion trigger at 130% of the conversion price and contingent payment at 130% of the principal.
The convertibles have dividend and takeover protection.
There is a net-share settlement feature.
Franklin, a Houston-based bank, said it will use the proceeds of the deal to pay part of the purchase price of the First National Bank of Bryan in Bryan, Texas.
| Issuer: | Franklin Bank Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | RBC Capital Markets
|
| Amount: | $100 million
|
| Greenshoe: | None
|
| Maturity: | May 1, 2027
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 40.127%
|
| Conversion price: | $22
|
| Conversion ratio: | 45.4545
|
| Contingent conversion: | 130%
|
| Contingent payment: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before May 6, 2012
|
| Puts: | May 1, 2012; May 1, 2017; May 1, 2022
|
| Price talk: | 3.5%-4%, up 40%-45%
|
| Pricing date: | April 12 after the close
|
| Settlement date: | April 18
|
| Distribution: | Off shelf
|
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