Odyssey Re $100 million convertibles talked at 4.0-4.5% yield, up 30-35%

By Ronda Fears

Nashville, Tenn., June 12 - Odyssey Re Holdings Corp.'s $100 million of 20-year convertibles are talked to price at a yield of 4.0% to 4.5% with a 30% to 35% initial conversion premium. The Rule 144A deal is set to price after the close Wednesday, via lead manager Banc of America Securities.

There is a $10 million greenshoe. The debentures will rank equally with Odyssey Re's unsecured and unsubordinated debt.

The issue will be non-callable for five years, with put options in years three, five, seven, 10 and 15.

There are contingent conversion and interest payment features, both with a 120% trigger.

New York-based Odyssey Re, the holding company for reinsurance-related subsidiaries of Fairfax Financial Holdings Ltd., intends to use proceeds to repay existing debt.

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