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New Issue: IndyMac upsized $175 million convertibles at 6.0% yield, up 27%
By Ronda Fears
Nashville, Tenn., Nov. 9 - IndyMac Bancorp Inc. sold $175 million of 30-year convertible warrant and income redeemable equity securities, or WIRES, at par of 50 to yield 6.0% with a 27% initial conversion premium. Morgan Stanley is lead manager of the registered deal, which was upsized from $150 million. The issue priced at the rich end of yield price talk that put the yield between 6.0% and 6.5%, and beyond the premium guidance of 20% to 25%. Pasedena, Calif.-based IndyMac said it would use proceeds for general corporate purposes.
Terms of the new deal are:
Issuer: IndyMac Bancorp Inc.
Amount: $175 million, up from $150 million
Greenshoe: $25 million, up from $22.5 million
Lead Manager: Morgan Stanley
Maturity Date: Nov. 14, 2031
Dividend: 6.0%
Issue Price: par, $50
Yield-to-maturity: 6.0%
Conversion Premium: 27%
Conversion Price: $31.31
Conversion Ratio: 1.597
Call: non-callable for five years, then with 120% trigger
Rating: S&P: B+
Settlement Date: Nov. 14
End
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