By Ronda Fears
Nashville, June 6 - Lincare Holdings Inc. sold $250 million of 30-year convertible senior debentures at par to yield 3.0% with a 70% initial conversion premium.
JPMorgan and Banc of America Securities were joint bookrunning lead managers of the Rule 144A deal.
The issue sold at the cheap end of price talk which put the yield at 2.5% to 3.0% with a 70% to 75% initial conversion premium.
Concurrently Lincare bought $45 million of stock from short sellers participating in the convertible.
The balance of proceeds will be used for general corporate purposes, which may include repaying outstanding borrowings under its revolving credit facility and repurchases of additional stock.
Terms of the deal are:
Issuer: Lincare Holdings Inc.
Issue: | Convertible senior debentures
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Lead managers: | JPMorgan and Banc of America Securities
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Amount | $250 million
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Greenshoe: | $25 million
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Maturity: | June 15, 2033
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Coupon: | 3.0%
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Price: | Par
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Yield: | 3.0%
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Conversion premium: | 70%
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Conversion price: | $53.326
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Conversion ratio: | 18.7512
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Call: | Non-callable for 5 years
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Put: | In year 5, 7, 10 and 15
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Contingent conversion: | 120%
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Contingent payment: | 120%
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Pricing date: | June 5
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Settlement: | June 11
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Distribution: | Rule 144A
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