AmeriCredit $500 million convertibles now talked at 0.75%, up 15%, 2.125%, up 25%

By Kenneth Lim

Boston, Sept. 12 - AmeriCredit Corp. on Tuesday set new price talk on its two-tranche, $500 million offering of convertible senior notes within original guidance ahead of pricing, which was expected after the market closed.

The five-year tranche was set at a coupon of 0.75% and an initial conversion premium of 15%, within original talk at a coupon of 0.625% to 1.125% and an initial conversion premium of 13% to 17%.

The seven-year tranche was set at a coupon of 2.125% and an initial conversion premium of 25%, while price talk was for a coupon of 2% to 2.5% and an initial conversion premium of 23% to 27%.

The notes were offered at par.

Each $250 million tranche has an over-allotment option for a further $25 million.

JP Morgan, Credit Suisse and Deutsche Bank were 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 sub-prime consumer 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.

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