By Kenneth Lim
Boston, April 18 - Lawson Software Inc. priced $200 million of five-year convertible senior notes within talk on Tuesday with a coupon of 2.5% and an initial conversion premium of 35%.
The convertibles were offered at par. They were talked at a coupon of 2.25% to 2.75% and an initial conversion premium of 32.5% to 37.5%.
There is an over-allotment option for a further $40 million.
Lehman Brothers was the bookrunner of the Rule 144A offering.
The convertibles are non-callable and may not be put.
There is a contingent conversion trigger at 130% of the conversion price.
The convertibles will be dividend and takeover protected.
Lawson, a St. Paul, Minn.-based software developer, said it will use some of the proceeds to fund convertible note hedge and warrant transactions. The warrants have an initial strike premium of 75%. The company also will concurrently buy back 5.4 million shares of its common stock for $47.9 million, or $8.90 apiece. The remaining proceeds will be used for general purposes.
| Issuer: | Lawson Software Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Lehman Brothers
|
| Amount: | $200 million
|
| Greenshoe: | $40 million
|
| Maturity: | April 15, 2012
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 35%
|
| Conversion price: | $12.02
|
| Conversion ratio: | 83.2293
|
| Warrant premium: | 75%
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 2.25%-2.75%, up 32.5%-37.5%
|
| Pricing date: | April 17, after the close
|
| Settlement date: | April 23
|
| Distribution: | Rule 144A
|
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