By Rebecca Melvin
New York, June 9 - National Financial Partners Corp. priced $125 million of seven-year convertible senior notes late Wednesday at par to yield 4% with an initial conversion premium of 22.5%, according to a syndicate source.
The Rule 144A offering priced at the cheap end of talk, which was for a coupon of 3.5% to 4% and an initial conversion premium of 22.5% to 27.5%.
The deal has a $15 million over-allotment option.
Goldman Sachs & Co. was the bookrunner for the offering, with Bank of America Merrill Lynch as the co-manager.
The bonds are non-callable with no puts.
Proceeds will be used to refinance debt under the company's existing revolving credit facility and to tender for its 0.75% convertible senior notes due 2012, as well as to fund the cost of the note hedge and warrant transactions.
National Financial priced $230 million of the 0.75% convertibles in January 2007.
In connection with the offering, National Financial planned to enter into convertible note hedge and warrant transactions. But no further information was available on the final terms by Prospect News' deadline.
National Financial is a New York-based financial services distribution company.
| Issuer: | National Financial Partners Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $125 million
|
| Greenshoe: | $15 million
|
| Maturity: | June 15, 2017
|
| Bookrunner: | Goldman Sachs & Co.
|
| Co-manager: | Bank of America Merrill Lynch
|
| Coupon: | 4%
|
| Price: | Par, $1,000
|
| Yield: | 4%
|
| Conversion premium: | 22.5%
|
| Call protection: | Non-callable
|
| Puts: | No puts
|
| Price talk: | 3.5%-4%, up 22.5%-27.5%
|
| Pricing date: | June 9
|
| Distribution: | Rule 144A
|
| Stock listing: | NYSE: NFP
|
| Stock reference price: | $10.51
|
| Market capitalization: | $440.5 million
|
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