By Ronda Fears
Nashville, Oct. 9 - iDine Rewards Networks Inc. sold $60 million of 20-year convertible notes at par to yield 3.25% with a 25% initial conversion premium, via sole bookrunner Credit Suisse First Boston.
The Rule 144A deal sold at the rich end of price talk which had put the yield at 3.25% to 3.75% and the premium at 20% to 25%.
Holders will have dividend protection by way of a conversion ratio adjustment.
Miami-based iDine markets programs that offer savings and rewards to members principally when they dine at participating restaurants, plus smaller programs for lodging and travel.
The company said proceeds will be used to pay down the debt outstanding under its existing credit facility, and general corporate purposes.
Terms of the new deal are:
Issuer: iDine Rewards Networks Inc.
| Issue: | Convertible subordinated notes
|
| Lead managers: | | Credit Suisse First Boston
|
| Amount | $60 million
|
| Greenshoe: | $10 million
|
| Maturity: | Oct. 15, 2023
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 25%
|
| Conversion price: | $17.89
|
| Conversion ratio: | 55.8971
|
| Call: | Non-callable for 5 years
|
| Put: | In years 5, 10 and 15
|
| Contingent conversion: | 110%
|
| Price talk: | 3.25-3.75%, up 20-25%
|
| Pricing date: | Oct. 8, after the close
|
| Settlement: | Oct. 13
|
| Distribution: | Rule 144A
|
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