Published on 1/28/2005 in the Prospect News Convertibles Daily.
New Issue: Open Solutions $125.4 million proceeds cash-to-zero convertibles yield 2.75%, up 32.5%
Nashville, Jan. 28 - Open Solutions Inc. sold $125.4 million in proceeds of 30-year cash-to-zero convertible senior subordinated notes at 53.356 for a yield to maturity of 2.75% with a 32.5% initial conversion premium via bookrunner Merrill Lynch & Co.
The Rule 144A deal priced aggressively outside of yield talk of 3.25% to 3.75% and smack in the middle of premium guidance of 30% to 35%.
Glastonbury, Conn.-based Open Solutions, which provides software services to financial institutions, said it would use proceeds for working capital and general corporate purposes.
Terms of the deal are:
| Issuer: | Open Solutions Inc.
|
| Issue: | Convertible senior subordinated notes
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| Bookrunner: | Merrill Lynch & Co.
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| Co-manager: | Citigroup Global Markets Inc.
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| Amount: | $125.4 million proceeds
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| Greenshoe: | $18.75 million proceeds
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| Maturity: | Feb. 2, 2035
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| Coupon: | 2.75% for seven years, then 0% accruing
|
| Price: | 53.356
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| Yield to maturity: | 2.75%
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| Conversion premium: | 32.5%
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| Conversion price: | $29.02
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| Conversion ratio: | 18.3875
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| Contingent conversion: | 130%
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| Contingent payment: | No
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| Cash settlement option: | Yes
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| Dividend protection: | Yes
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| Takeover protection: | Yes
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| Call: | Non-callable for 7 years
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| Put: | In years 7, 10, 15, 20 and 25
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| Price talk: | 3.25%-3.75%, up 30%-35%
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| Pricing date: | Jan. 27, after the close
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| Settlement date: | Feb. 2
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| Distribution: | Rule 144A
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