By Rebecca Melvin
New York, Nov. 6 - Layne Christensen Co. priced an upsized $110 million of five-year convertible senior notes at par to yield 4.25% with an initial conversion premium of 30%, according to a news release.
The Rule 144A offering was initially talked at $75 million in size, and pricing came toward the cheap end of 3.75% to 4.5% coupon talk and at the midpoint of 27.5% to 32.5% premium talk.
There is a $15 million greenshoe.
Jefferies & Co. is the bookrunner.
The bonds are non-callable or three years and then are provisionally callable if shares exceed 130% of the conversion price. There is also takeover protection and net share settlement.
Proceeds will be used to repay amounts outstanding under the company's revolving credit facility. Any excess proceeds will be used for working capital and general corporate purposes.
The Mission Woods, Kan.-based issuer provides drilling, water treatment and construction services.
| Issuer: | Layne Christensen Co.
|
| Issue: | Convertible senior notes
|
| Amount: | $110 million, upsized from $75 million
|
| Greenshoe: | $15 million
|
| Maturity: | Nov. 15, 2018
|
| Bookrunner: | Jefferies & Co.
|
| Coupon: | 4.25%
|
| Price: | Par
|
| Yield: | 4.25%
|
| Conversion premium: | 30%
|
| Conversion price: | $22.93
|
| Conversion ratio: | 43.6072
|
| Call option: | On and after Nov. 15, 2016 if shares exceed 130% price hurdle
|
| Takeover protection: | Yes
|
| Contingent conversion: | Yes, after three years at 130% price hurdle
|
| Net share settlement: | Yes
|
| Price talk: | 3.75%-4.5%, up 27.5%-32.5%
|
| Distribution: | Rule 144A
|
| Pricing date: | Nov. 5
|
| Settlement date: | Nov. 11
|
| Stock symbol: | Nasdaq: LAYN
|
| Stock reference price: | $17.64, at close Nov. 5
|
| Market capitalization: | $341.41 million
|
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