AmeriCredit $200 million convertible talked at 1.25-1.75% yield, up 32.5-37.5%

By Ronda Fears

Nashville, Nov. 11 - AmeriCredit Corp. plans to sell $200 million of 20-year convertible notes talked to yield 1.25% to 1.57% with a 32.5% to 37.5% initial conversion premium after the close Wednesday.

Credit Suisse First Boston and JPMorgan are joint lead managers of the Rule 144A deal.

The senior notes will be non-callable for five years, with puts in years five, 10 and 15.

There is a 120% contingent conversion trigger.

There is a $30 million greenshoe available.

The Fort Worth, Texas-based finance company said proceeds would be used to hedge the issue by purchasing AmeriCredit common stock, which is expected to reduce the potential dilution from conversion of the notes, and for working capital and other corporate purposes, which may include retiring other debt.

AmeriCredit shares closed Tuesday down 43c, or 2.97%, to $14.07.

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