Liz Claiborne to price $75 million five-year convertibles to yield 5.5%-6%, up 20%-25%

By Rebecca Melvin

New York, June 17 - Liz Claiborne Inc. plans to price $75 million of five-year convertible senior notes after the market close Thursday with talk guiding for a yield of 5.5% to 6% and an initial conversion premium of 20% to 25%, according to a syndicate source.

The Rule 144A offering has a greenshoe of $15 million, and the deal is being sold via bookrunners J.P. Morgan Securities Inc. and Merrill Lynch & Co.

The notes are non-callable and have no puts, except a change-of-control put.

Proceeds are to pay down temporarily a portion of outstanding borrowings under the company's amended credit facility.

New York-based Liz Claiborne is a women's apparel designer and retailer.

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