By Kenneth Lim
Boston, Sept. 13 - AmeriCredit Corp. on Tuesday priced its two-tranche $500 million offering of convertible senior notes within talk.
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.
Both series of notes are non-callable for life, and there are no investor puts.
There are dividend and takeover protection features 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.
| Issuer: | AmeriCredit Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | JP Morgan, Credit Suisse and Deutsche Bank
|
| Pricing date: | Sept. 12, after the close
|
| Settlement date: | Sept. 18
|
| Distribution: | Rule 144A
|
|
|
| Five-year tranche
|
| Amount: | $250 million
|
| Greenshoe: | $25 million
|
| Maturity: | Sept. 15, 2011
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 0.75%
|
| Conversion premium: | 15%
|
| Conversion price: | $28.07
|
| Conversion ratio: | 35.6233
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 0.625%-1.125%, up 13%-17%
|
|
|
| Seven-year tranche
|
| Amount: | $250 million
|
| Greenshoe: | $25 million
|
| Maturity: | Sept. 15, 2013
|
| Coupon: | 2.125%
|
| Price: | Par
|
| Yield: | 2.125%
|
| Conversion premium: | 25%
|
| Conversion price: | $30.51
|
| Conversion ratio: | 32.7735
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 2%-2.5%, up 23%-27%
|
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