Ascent Capital to price $90 million seven-year convertibles to yield 4%-4.5%, up 27.5%-32.5%

By Rebecca Melvin

New York, July 11 - Ascent Capital Group Inc. plans to price $90 million of seven-year convertible senior notes after the market close Thursday to yield 4% to 4.5% with an initial conversion premium of 27.5% to 32.5%, according to market sources.

The registered offering has a$13.5 million greenshoe and was being sold via joint bookrunners BofA Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC.

Proceeds will be used to fund a portion of the purchase price of a previously announced acquisition of Security Networks LLC by Monitronics. If the acquisition is not completed for any reason, Ascent will use proceeds for general corporate purposes.

In connection with the offering, Ascent plans to enter into hedge and warrant transactions with counterparties that may include one or more of the underwriters.

The notes are non-callable for life with no puts. They have contingent conversion if shares rise to 130% of the conversion price. There is flexible settlement, and there is dividend and takeover protection.

Greenwood Village, Colo.-based Ascent Capital is a holding company with operating subsidiaries including home security alarm company Monitronics.

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