AmeriCredit plans $500 million convertibles; talk 0.625%-1.125%, up 13%-17%, 2%-2.5%, up 23%-27%

By Kenneth Lim

Boston, Sept. 11 - AmeriCredit Corp. plans to price on Tuesday after the market closes a two-tranche $500 million offering of convertible senior notes.

The five-year, $250 million tranche is talked at a coupon of 0.625% to 1.125% and an initial conversion premium of 13% to 17%, while the seven-year, $250 million tranche is talked at a coupon of 2% to 2.5% and an initial conversion premium of 23% to 27%.

The notes will be offered at par.

Each series has an over-allotment option for a further $25 million.

JP Morgan, Credit Suisse and Deutsche Bank are the bookrunners of the Rule 144A deals.

AmeriCredit did not disclose the call and put dates for the notes.

There will be dividend and takeover protection on the notes.

AmeriCredit, a Fort Worth, Texas-based finance company, said it will use the proceeds of the offering to buy back $200 million of its common stock and to enter into convertible note hedge and warrant transactions. The rest of the proceeds will be used for general corporate purposes.

AmeriCredit stock closed at $22.43 on Monday, a 0.09% or 2 cent gain before the deal was announced.

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