Nashville, Nov. 12 - AmeriCredit Corp. sold $200 million of 20-year convertible notes at par to yield 1.75% with a 32.5% initial conversion premium via joint bookrunners Credit Suisse First Boston and JPMorgan.
The Rule 144A deal sold at the cheap end of price talk for 1.25% to 1.75% yield with a 32.5% to 37.5% initial conversion premium.
The Fort Worth, Texas-based finance company said proceeds would be used to purchase from Credit Suisse First Boston a convertible note hedge with respect to its common stock, effectively boosting the conversion price on the notes from the company's perspective to $28.20, or a conversion premium of 100%.
Remaining proceeds will be used for working capital and other general corporate purposes, including possible retirement of other debt.
Terms of the deal are:
| Issuer: | AmeriCredit Corp.
|
| Issue: | Convertible senior notes
|
| Lead managers: | Credit Suisse First Boston and JPMorgan
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| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | Nov. 15, 2023
|
| Coupon: | 1.75%
|
| Price: | Par
|
| Yield: | 1.75%
|
| Conversion premium: | 32.5%
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| Conversion price: | $18.6825
|
| Conversion ratio: | 53.526
|
| Contingent conversion: | 120%
|
| Call: | Noncallable for 5 years
|
| Put: | In years 5, 10 and 15
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| Price talk: | 1.25-1.75%, up 32.5-37.5%
|
| Pricing date: | Nov. 12, after the close
|
| Settlement date: | Nov. 18
|
| Distribution: | Rule 144A
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