By Ronda Fears
Nashville, Tenn., June 14 - Labor Ready Inc. sold a downsized $65 million of five-year convertible subordinated notes at par to yield 6.25% with a 21% initial conversion premium in the Rule 144A market, via lead manager Lehman Brothers.
The issue sold at the cheap end of yield talk of 5.75% to 6.25% and at the cheap end of premium guidance of 22% to 25%.
It was reduced from $75 million.
The Tacoma, Wash.-based temporary employment firm plans to use proceeds for working capital and general corporate purposes, which could include collateral for its workers' compensation program and expansion of its domestic and international operations.
Terms of the new deal are:
| Issuer: | Labor Ready Inc.
|
| Amount: | $65 million
|
| Greenshoe: | $10 million
|
| Lead Manager: | | Lehman Brothers
|
| Maturity Date: | June 15, 2007
|
| Coupon: | 6.25%
|
| Issue Price: | par
|
| Yield: | 6.25%
|
| Conversion Premium: | 21%
|
| Conversion Price: | $7.26
|
| Conversion Ratio: | 13.77
|
| Call: | non-callable for three years, then with 125% hurdle
|
| Settlement Date: | June 19
|
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