By Ronda Fears
Nashville, Tenn., May 8 - IKON Office Solutions Inc., through its IOS Capital LLC unit, sold an upsized $300 million of five-year convertible subordinated notes at par to yield 5.0% with a 29% initial conversion premium via sole lead manager Deutsche Bank Securities Inc. Pricing of the Rule 144A deal was advanced from Thursday.
The deal, which also was upsized from $250 million in proceeds, sold at the middle of yield price talk and more aggressive than premium guidance of 23% to 27%.
Valley Forge, Pa.-based IKON, a business equipment and services company, plans to use proceeds for general corporate purposes, including repaying debt.
Terms of the new deal are:
Issuer: IOS Capital LLC
Amount: $300 million, up from $250 million
Greenshoe: $50 million
Lead Manager: Deutsche Bank Securities Inc.
Maturity Date: May 9, 2007
Coupon: 5.0%
Issue Price: Par
Yield: 5.0%
Conversion Premium: 29%
Conversion Price: $15.03
Conversion Ratio: 66.5336
Call: non-callable for three years
Expected Ratings: Moody's:Baa3
| S&P: BB+
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| Settlement Date: | May 13
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