Nashville, Dec. 5 - Input/Output Inc. sold $50 million of five-year convertible notes at par to yield 5.5% with a 24.14% initial conversion premium via sole bookrunner Morgan Stanley & Co. Inc.
The Rule 144A deal priced at the tight end of revised price talk of 5.5% to 6.0%, up 20% to 24%. Original price talk was for 6.0% to 6.5%, up 15% to 20%.
The Houston-based seismic information firm said $16 million of proceeds would be used to repay debt and the balance for potential acquisitions.
In addition, Laitram LLC, one of Input/Output's largest shareholders and an affiliate of the company's chairman of the board, has informed Input/Output of its intention to purchase up to $7.5 million of Input/Output common shares sold short by purchasers of the notes.
Terms of the deal are:
| Issuer: | Input/Output Inc.
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| Issue: | Convertible senior notes
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| Bookrunner: | Morgan Stanley & Co. Inc.
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| Amount: | $50 million
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| Greenshoe: | $10 million
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| Maturity: | December 2008
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| Coupon: | 5.5%
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| Price: | Par
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| Yield: | 5.5%
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| Conversion premium: | 24.14%
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| Conversion price: | $4.32
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| Conversion ratio: | 231.4315
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| Price talk: | Revised: 5.5-6.0%, up 20-24%
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| Original: 6.0-6.5%, up 15-20%
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| Pricing date: | Dec. 4, after the close
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| Settlement date: | Dec. 10
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| Distribution: | Rule 144A
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