Penson Worldwide prices $50 million convertibles to yield 8%, up 15%

New York, May 28 - Penson Worldwide, Inc. priced $50 million of five-year convertible senior notes on Thursday after the market closed to yield 8% with a 15% initial conversion premium.

The deal came at the middle of talk which put the coupon at 7.75% to 8.25% and the initial conversion premium at 12.5% to 17.5%.

The conversion price is $9.81 and the conversion ratio 101.9420.

There is an over-allotment option for an additional $10 million.

J.P. Morgan Securities Inc. is the bookrunner for the Rule 144A offering.

The notes are non-callable and may not be put.

Proceeds will be used to pay down some of the company's existing $70 million of corporate debt, to provide working capital and for other general corporate purposes.

Settlement is scheduled for June 3.

Penson is a Dallas-based securities clearing firm.

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