Layne Christensen greenshoe lifts 4.25% convertibles to $125 million

By Marisa Wong

Madison, Wis., Dec. 5 - Layne Christensen Co. said that the underwriter of its previously announced private placement of 4.25% convertible senior notes due 2018 exercised in full its $15 million over-allotment option. The additional notes were expected to settle on Thursday, according to a news release.

This brings the total issue size to $125 million. The company priced an upsized $110 million of five-year convertible senior notes at par to yield 4.25% with an initial conversion premium of 30% on Nov. 5.

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.

Jefferies & Co. was 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.