By Rebecca Melvin
New York, July 22 - Horsehead Holding Corp. priced $80 million of six-year convertible senior notes after the market close Thursday at par to yield 3.8% with an initial conversion premium of 35%, according to a news release.
The Rule 144A offering priced toward the cheap end of talk for the coupon, which was 3.375% to 3.875%, and at the rich end of premium talk, which was 31% to 36%.
The offering has a $20 million greenshoe and was sold via bookrunner Stifel Nicolaus & Co. Inc., with co-managers Canaccord, Genuity Corp., KeyBanc Capital Markets LLC and PNC Capital Markets LLC.
The notes are non-callable for life and have no holder puts. They can be settled in cash or stock at the company's option.
Proceeds will be used, together with cash on hand, for construction of a new zinc facility and for general corporate purposes, including working capital, investment in business initiatives, capital expenditures and acquisitions.
Horsehead is a Pittsburgh-based producer of specialty zinc and zinc products.
| Issuer: | Horsehead Holding Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $80 million
|
| Greenshoe: | $20 million
|
| Maturity: | July 1, 2017
|
| Bookrunner: | Stifel Nicolaus & Co. Inc.
|
| Co-managers: | Canaccord, Genuity Corp., KeyBanc Capital Markets LLC, PNC Capital Markets LLC
|
| Coupon: | 3.8%
|
| Price: | Par
|
| Yield: | 3.8%
|
| Conversion premium: | 35%
|
| Conversion price: | $15.00
|
| Conversion ratio: | 66.6667
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Price talk: | 3.375%-3.875%, up 31%-36%
|
| Settlement date: | July 27
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: ZINC
|
| Stock price: | $11.09 at close July 21
|
| Market capitalization: | $503 million
|
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