By Ronda Fears
Nashville, July 16 - Pegasus Solutions Inc. sold $75 million of 20-year convertible notes at par to yield 3.875% with a 35% initial conversion premium, via lead managers Bear Stearns & Co. and JPMorgan.
The issue sold at the cheap end of price talk which put the yield at 3.375% to 3.875% with a 35% to 40% initial conversion premium.
Pegasus said proceeds would be used for working capital and other general corporate purposes.
Terms of the new deal are:
Issuer: Pegasus Solutions Inc.
| Issue: | Convertible senior notes
|
| Lead managers: | | Bear Stearns and JPMorgan
|
| Amount | $75 million
|
| Greenshoe: | $15 million
|
| Maturity: | July 15, 2023
|
| Coupon: | 3.875%
|
| Price: | Par
|
| Yield: | 3.875%
|
| Conversion premium: | 35%
|
| Conversion price: | $20.13
|
| Conversion ratio: | 49.6808
|
| Call: | Non-callable for 5 years
|
| Put: | In years 5, 10 and 15
|
| Contingent conversion: | 120%
|
| Price talk: | 3.375-3.875%, up 35-40%
|
| Pricing date: | July 15, after the close
|
| Settlement: | July 21
|
| Distribution: | Rule 144A
|
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