By Rebecca Melvin
New York, June 24 - LodgeNet Interactive Corp. priced $50 million of series B perpetual convertible preferred stock Tuesday after the market close with a 10% dividend and an initial conversion premium of 10%, according to a news release.
There is an over-allotment option for an additional $7.5 million.
The deal priced beyond the cheap end of talk for the dividend, which was 8% to 9%, and at the cheap end of talk for the initial conversion premium, which was 10% to 20%.
Bank of America/Merrill Lynch was the bookrunner for the Rule 144A offering.
The preferreds are callable subject to a hurdle at 150% of the conversion price and a make-whole dividend payment for the first five years. Thereafter, the preferreds may be called subject to a hurdle at 125% of the conversion price.
Proceeds will be used to reduce the outstanding balance on a term loan and for general working capital.
LodgeNet is a Sioux Falls, S.D.-based provider of interactive media and connectivity solutions to the hospitality industry.
| Issuer: | LodgeNet Interactive Corp.
|
| Issue: | Convertible perpetual preferred shares
|
| Amount: | $50 million
|
| Greenshoe: | $7.5 million
|
| Bookrunner: | Bank of America-Merrill Lynch
|
| Dividend: | 10%
|
| Price: | Par of $1,000
|
| Yield: | 10%
|
| Conversion premium: | 10%
|
| Conversion price: | $3.78
|
| Conversion ratio: | 264.5503 shares
|
| Price talk: | 8%-9%, up 10%-20%
|
| Calls: | Until July 15, 2014, forced conversion of some or all of the preferreds at 150% price hurdle for 20 out of 30 consecutive trading days; thereafter provisionally callable at a 125% price hurdle
|
| Pricing date: | June 23
|
| Settlement date: | June 29
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: LNET
|
| Stock reference: | $3.42
|
| Market capitalization: | $78.68 million
|
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