By Ronda Fears
Nashville, April 10 - Photronics Inc. sold $125 million of five-year convertibles at par to yield 2.25% with a 42.5% conversion premium in the Rule 144A market, via joint bookrunning lead managers Merrill Lynch, Morgan Stanley and JPMorgan.
The deal priced at the rich end of talk which put the yield at 2.25% to 2.75% with a 37.5% to 42.5% initial conversion premium.
Part of the proceeds from the new deal will be used to redeem a portion of the Photronics' old 6% convertible due 2004. There is less than $100 million outstanding on that issue, sources said.
Photronics also said Wednesday that it has amended its $100 million three-year multicurrency revolving credit facility, relaxing financial covenants to accommodate the $36 million to $40 million consolidation charge announced March 25.
Also, the amended bank facility relaxed limitations on the total amount available for borrowing under the facility.
As of April 8, Photronics had $10.4 million outstanding under the facility and could have borrowed another $29.8 million. After the amendment, and the planned redemption of the 6% convertibles via the new deal, the company will be able to borrow another $78.3 million.
Terms of the deal are:
Issuer: Photronics Inc.
| Issue: | Convertible subordinated notes
|
| Bookrunners: | Merrill Lynch, Morgan Stanley and JPMorgan
|
| Amount | $125 million
|
| Greenshoe: | $25 million
|
| Maturity: | April 9, 2008
|
| Coupon: | 2.25%
|
| Price: | Par
|
| Yield to maturity: | 2.25%
|
| Conversion premium: | 42.5%
|
| Conversion price: | $15.889
|
| Conversion ratio: | 62.9376
|
| Call: | Non-callable
|
| Settlement: | April 15
|
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