By Ronda Fears
Nashville, May 15 - Northwest Airlines Corp. sold $150 million of 20-year convertible senior notes in the overnight Rule 144A market at par to yield 6.625% with a 60% initial conversion premium, via lead manager Citigroup.
The issue, which did not have pre-pricing guidance, will pay a cash coupon for seven years, then 0% but accrete the full yield through maturity.
Proceeds are earmarked for working capital and general corporate purposes.
The notes are guaranteed by Northwest Airlines Inc.
Terms of the deal are:
Issuer: Northwest Airlines Corp.
| Issue: | Convertible senior notes
|
| Lead manager: | | Credit Suisse First Boston
|
| Amount | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | May 15, 2023
|
| Coupon: | 6.625% for seven years, then 0%
|
| Price: | Par
|
| Yield to maturity: | 6.625%
|
| Conversion premium: | 60%
|
| Conversion price: | $16.18
|
| Conversion ratio: | 61.8047
|
| Call: | Non-callable for seven years
|
| Put: | In years 7, 10 and 15
|
| Contingent conversion: | 120%
|
| Settlement: | May 20
|
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