New Issue: Orix $350 million (proceeds) convertibles at 4.75% yield, up 45%

By Ronda Fears

Nashville, Tenn., May 29 - Orix Corp. sold $350 million in proceeds of 20-year zero-coupon convertible senior notes at 39.106 for a yield-to-maturity of 4.75% with a 45% initial conversion premium. Merrill Lynch was sole lead manager of the Rule 144A deal.

The issue is convertible into the Tokyo-based insurance and financial services firm's local shares on the Tokyo exchange or ADRs.

Final terms were at the cheap end of pricing guidance that put the yield between 4.25% and 4.75%. The premium had been talked at 45%.

Term of the new deal are:

Issuer: Orix Corp.

Amount: $350 million

Greenshoe: $50 million

Lead Manager: Merrill Lynch

Maturity Date: June 14, 2022

Coupon: 0.0%

Issue Price: 39.106

Yield-to-maturity: 4.75%

Conversion Premium: 45%

Conversion Price: $127.44 per half ADR share, or $63.90 per ADR

Conversion Ratio: 3.0686 per half ADR share, or 6.1672 per ADR

Call: non-callable for five years

Put: in years five, 10 and 15

Contingent Conversion: 110% trigger

Settlement Date: June 14

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