A. Schulman greenshoe ups 6% convertible special stock to $125 million

By Toni Weeks

San Luis Obispo, Calif., May 4 – Underwriters for A. Schulman, Inc.’s offering of cumulative perpetual convertible special stock fully exercised their $15 million greenshoe, lifting the deal’s proceeds to $125 million.

The company priced $110 million of the convertibles with the greenshoe on April 28 at par to yield 6%.

Pricing of the registered deal came beyond the rich end of 6.5% to 7% talk on the dividend and at the rich end of 20% to 25% premium talk.

J.P. Morgan Securities LLC and BofA Merrill Lynch were joint bookrunners of the deal. Co-managers were Commerz Markets LLC, BBVA Securities Inc., Citigroup Global Markets Inc. and RBS Securities Inc.

The notes are initially convertible at $52.33, or about a 25% premium to the closing share price of the stock on April 28.

Proceeds from the sale will be used to help fund the $800 million acquisition of HGGC Citadel Plastics Holdings, Inc. If the acquisition is not completed, proceeds will be used for general corporate purposes, including debt repayment.

A. Schulman is an Akron, Ohio-based supplier of high-performance plastic compounds, powders and resins.

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