New York, May 3 - Lennox International Inc. increased its offering of convertibles subordinated notes due 2009 by $25 million and priced the $125 million offering to yield 6.25% and with an initial conversion premium of 25%.
Both the yield and the conversion premium were at the aggressive end of talk which had put them at 6.25% to 6.75% and 20% to 25% respectively. The deal had been marketed at $100 million.
UBS Warburg was the lead manager for the Rule 144A offering, which priced after the close Thursday.
The Dallas, Texas heating, ventilation, air conditioning and refrigeration company will use proceeds to repay bank borrowings.
Terms of the deal are as follows:
| Issuer: | Lennox International Inc.
|
| Issue: | Convertible subordinated notes
|
| Lead manager: | UBS Warburg
|
| Amount: | $125 million
|
| Greenshoe: | $18.75 million
|
| Maturity: | May 13, 2009
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 25%
|
| Conversion price: | $18.0875
|
| Conversion ratio: | 55.287
|
| Provisional call: | April 29, 2005 onwards at par with 130% trigger
|
| Contingent conversion: | 130%
|
| Settlement: | May 8, 2002
|
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