By Rebecca Melvin
New York, Oct. 22 - Navistar International Corp. priced an upsized $550 million of five-year convertibles after the market close Thursday at par to yield 3% with an initial conversion premium of 35%, according to a syndicate source.
There is a greenshoe of $75 million of notes.
The deal was originally talked to be $500 million in size.
The deal priced at the rich end of revised talk. Price talk was revised early Thursday to 3% to 3.25% for the coupon, from 3.25% to 3.75%; and to 30% to 35% for the premium, from 25% to 30%.
Navistar also priced $1 billion of 8.25% straight notes due 2021, which came at a discounted 96.328 to yield 8.75%.
Both offerings were registered, off-the-shelf deals, with proceeds earmarked to repay a $1.1 billion term loan and a $400 million synthetic revolving senior unsecured loan, which expire in January 2012, as well for general corporate purposes.
Also in connection with the convertible senior subordinated notes, Navistar entered into convertible note hedge and warrant transactions with hedge counterparties.
The five-year bullets were priced via J.P. Morgan Securities Inc., Credit Suisse, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. acting as joint bookrunners.
RBC Capital Markets Corp., Scotia Capital and UBS Investment Bank were co-managers.
Navistar is a Warrenville, Ill.-based manufacturer of commercial trucks, buses, diesel engines, military vehicles and chassis.
| Issuer: | Navistar International Corp.
|
| Issue: | Convertible senior subordinated notes
|
| Amount: | $550 million, upsized from $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | 2014
|
| Concurrent offering: | $1 billion of 8.25% straight notes due 2021
|
| Bookrunners: | J.P. Morgan Securities Inc., Credit Suisse, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co.
|
| Co-managers: | RBC Capital Markets Corp., Scotia Capital, UBS Investment Bank
|
| Coupon: | 3%
|
| Price: | Par, $1,000
|
| Yield: | 3%
|
| Conversion premium: | 35%
|
| Conversion price: | $50.27
|
| Conversion ratio: | 19.8910
|
| Call protection: | Non-callable
|
| Puts: | No puts
|
| Price talk: | 3%-3.25%, up 30%-35%; revised from 3.25%-3.75%; up 25%-30%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | Oct. 22
|
| Settlement date: | Oct. 28
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | NYSE: NAV
|
| Stock reference price: | $37.24
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
