By Kenneth Lim
Boston, Feb. 12 - Anixter International Inc. priced $300 million of six-year convertible senior notes on Monday after the market closed, at a coupon of 1% and an initial conversion premium of 15%. The coupon came richer than talk while the conversion premium was within the expected range.
The convertibles were offered at par. Price talk guided for a coupon of 1.25% to 1.75% and an initial conversion premium of 12.5% to 17.5%.
The size of the deal was originally $275 million, but an over-allotment option for a further $25 million was immediately exercised upon pricing.
Merrill Lynch was the bookrunner for the Rule 144A offering.
The convertibles are non-callable, and may not be put.
There is a contingent conversion trigger at 130% of the conversion price.
The convertibles have dividend and takeover protection.
Anixter, a Glenview, Ill.-based distributor of communications and specialty wire and cable parts, plans to use the proceeds to concurrently buy back $100 million of its common stock, to fund general purposes and for convertible note hedge and warrant transactions.
| Issuer: | Anixter International Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Merrill Lynch
|
| Amount: | $300 million, including $25 million greenshoe already exercised
|
| Greenshoe: | $25 million, already exercised
|
| Maturity: | Feb. 15, 2013
|
| Coupon: | 1%
|
| Price: | Par
|
| Yield: | 1%
|
| Conversion premium: | 15%
|
| Conversion price: | $63.48
|
| Conversion ratio: | 15.753
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 1.25%-1.75%, up 12.5%-17.5%
|
| Pricing date: | Feb. 12 after the close
|
| Distribution: | Rule 144A
|
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