New York, LandAmerica Financial Group, Inc. priced $125 million of convertible senior debentures due 2034 at par to yield 3.25% with a 40% initial conversion premium.
The deal came at the cheap end of talk, which had put the yield at 2.75% to 3.25% and the initial conversion premium at 40% to 45%.
J.P. Morgan was bookrunner of the Rule 144A deal.
The offering has a $25 million greenshoe.
LandAmerica used $9.5 million of the proceeds to enter into a convertible bond hedge transaction to limit potential dilution from conversion of the debentures and a warrant option transaction.
The Richmond, Va. title insurance company will use the remainder to repay borrowings on its revolving credit facility and for investment and general corporate purposes.
| Issuer: | LandAmerica Financial Group, Inc.
|
| Issue: | Convertible senior debentures
|
| Amount: | $125 million
|
| Greenshoe: | $25 million
|
| Maturity: | 2034
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Initial conversion premium: | 40%
|
| Conversion price: | $54.42
|
| Conversion ratio: | 18.3763, par payable in cash, remainder in stock
|
| Contingent conversion: | 125%
|
| Put: | In years 10, 15, 20 and 25
|
| Call: | May 15, 2014 onwards at par
|
| Bookrunner: | J.P. Morgan
|
| Talk: | Yield: 2.75% to 3.25%, initial conversion premium: 40% to 45%
|
| Pricing date: | May 5, after close
|
| Settlement: | May 11
|
| Distribution: | Rule 144A
|
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