By Rebecca Melvin
New York, March 18 - Hawaiian Airlines Inc. priced $75 million of five-year convertible senior notes on Thursday at par to yield 5% with an initial conversion premium of 29%, according to a Friday prospectus.
The deal came toward the cheap end of talk for the coupon, which was 4.625% to 5.125%, but beyond the rich end of the talked premium, which was 22.5% to 27.5%.
The registered offering has an $11.25 million greenshoe and was sold via bookrunner UBS Securities LLC and co-manager Imperial Capital LLC.
The notes are non-callable with no puts. The notes are provisionally callable prior to Nov. 15, 2015 if the share price is 130% of conversion for at least 20 trading days in a 30-day period.
The notes are will be settled in cash, shares or a combination.
In connection with the notes, Hawaiian Airlines entered into hedge and warrant transactions with the underwriters and affiliates or institutional investors. The strike price of the warrant transactions will initially be $10.00 per share, which puts the initial conversion premium on the notes from the issuer's perspective at about 64%.
A portion of the proceeds will be used to pay the cost of the hedge transactions, with remaining proceeds to repay a portion of the company's existing credit agreement and for general corporate purposes, which may include working capital, fleet capital expenditures, acquisitions, refinancing of existing or other debt or other capital transactions.
Hawaiian Airlines is a Honolulu-based airline.
| Issuer: | Hawaiian Airlines Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $75 million
|
| Greenshoe: | $11.25 million
|
| Maturity: | March 15, 2016
|
| Bookrunner: | UBS Securities LLC
|
| Co-manager: | Imperial Capital LLC
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 29%
|
| Conversion price: | $7.88
|
| Conversion ratio: | 126.8730
|
| Calls: | Non-callable for life
|
| Price talk: | 4.625%-5.125%, up 22.5%-27.5%
|
| Pricing date: | March 17
|
| Settlement date: | March 23
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: HA
|
| Stock reference price: | $6.11 at close March 17
|
| Market capitalization: | $306.8 million
|
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