By Kenneth Lim
Boston, Feb. 28 - HealthSouth Corp priced an upsized $400 million of convertible perpetual preferred stock late Tuesday at the rich end of talk for a coupon of 6.5% and an initial conversion premium of 25%.
The deal's size was originally set at $300 million, while price talk was for 6.5% to 7%, up 20% to 25%.
JP Morgan, Merrill Lynch and Citigroup are the bookrunners of the Section 4(2) deal.
The preferreds may be converted into HealthSouth common stock at a conversion price of $6.10.
They are non-callable for five years, and are convertible after that subject to a 150% trigger. They are protected from changes in dividend payouts and in takeover situations, syndicate sources confirmed.
HealthSouth, a Birmingham, Ala.-based provider of outpatient surgery, diagnostic imaging and rehabilitative health care services, is using proceeds from the deal to reduce its indebtedness. The company's stock currently trades on the Pink Sheets.
| Issuer: | HealthSouth Corp.
|
| Issue: | Convertible perpetual preferred stock
|
| Bookrunner: | JP Morgan, Merrill Lynch, Citigroup
|
| Amount: | $400 million
|
| Dividend: | 6.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $6.10
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call: | After 5 years, subject to 150% trigger
|
| Price talk: | 6.5%-7%, up 20-25%
|
| Pricing date: | Feb. 28
|
| Settlement date: | March 7
|
| Distribution: | Section 4(2)
|
| Symbol: | Pink Sheets: HLSH
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
