By Rebecca Melvin
New York, June 20 - Leap Wireless International Inc. priced an upsized $220 million of six-year convertible senior notes late Thursday at par to yield 4.5% with an initial conversion premium of 77.5%, according to a news release.
Initially the deal size was expected to be $200 million.
The Rule 144A deal priced on the rich end of talk for the coupon, which was 4.5% to 5%, and at the rich end of talk for the initial conversion premium, which was 72.5% to 77.5%.
There is an over-allotment option for an additional $30 million.
Goldman Sachs and Morgan Stanley are the bookrunners of the offering, with Citigroup and Deutsche Bank as co-managers.
Concurrently, Leap priced $300 million of 10% senior notes due 2015.
Proceeds from the offering will be used for working capital and other general corporate purposes, including the build-out of new markets, the expansion of Leap's footprint in its existing markets and the development of its broadband initiative.
Leap Wireless is a San Diego, Calif.-based provider of digital wireless services in the United States.
| Issuer: | Leap Wireless International Inc.
|
| Issue: | Convertible unsecured senior notes
|
| Bookrunners: | Goldman Sachs and Morgan Stanley
|
| Co-managers: | Citigroup and Deutsche Bank
|
| Amount: | $220 million, upsized from $200 million
|
| Greenshoe: | $30 million
|
| Concurrent offering: | $300 million of 10% senior notes due 2015
|
| Maturity: | July 20, 2014
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 77.5%
|
| Conversion ratio: | 10.7290
|
| Conversion price: | $93.21
|
| Price talk: | 4.5%-5%, up 72.5%-77.5%
|
| Calls: | Non-callable for life
|
| Puts: | No puts
|
| Pricing date: | June 19
|
| Settlement date: | June 25
|
| Distribution: | Rule 144A
|
| Listing: | Nasdaq: LEAP
|
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