By Ronda Fears
Nashville, Dec. 17 - The Phoenix Cos. Inc. sold $150 million of three-year mandatory convertibles at par of 25 to yield 7.25% with a 22% initial conversion premium.
The deal, via joint bookrunning managers Merrill Lynch & Co. and Morgan Stanley, priced at the aggressive end of guidance which had put the yield at 7.25-7.75% and the premium at 18% to 22%. The deal was increased from a planned size of $130 million.
Phoenix said it will use $125 million of proceeds to repay outstanding debt under its credit facility and any remaining proceeds for general corporate purposes.
Terms of the new deal are:
| Issuer: | The Phoenix Cos. Inc.
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| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Lead managers: | Merrill Lynch & Co. and Morgan Stanley
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| Maturity date: | Feb. 16, 2006
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| Dividend: | 7.25%
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| Issue price: | Par, $25
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| Yield: | | 7.25%
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| Conversion premium: | 22%
|
| Conversion price: | $7.23/$8.821
|
| Conversion ratio: | 2.834/3.458
|
| Call: | Non-callable
|
| Settlement Date: | Dec. 23
|
| Ratings: | Fitch: BBB+
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