By Ronda Fears
Memphis, March 21 - Pioneer Cos. Inc. priced $100 million of 20-year convertible senior subordinated notes at the rich end of talk on Tuesday after the market closed at par with a coupon of 2.75% and an initial exchange premium of 30%.
There is an over-allotment option for a further $20 million.
CIBC Capital Markets was bookrunner of the Rule 144A offering.
The notes are non-callable for seven years and may be put in years seven, 10 and 15.
There is a contingent conversion trigger at 120%.
The convertibles have dividend and takeover protection.
There is a net-share settlement feature.
Pioneer, a Houston-based maker of chlor-alkali products, will use proceeds to redeem its $75 million of 10% senior secured notes due 2008, to fund the expansion of its St. Gabriel, La., plant and for general purposes.
| Issuer: | Pioneer Cos. Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | CIBC Capital Markets
|
| Amount: | $100 million
|
| Greenshoe: | $20 million
|
| Maturity: | March 1, 2027
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 30%
|
| Conversion price: | $35.31
|
| Conversion ratio: | 28.3222
|
| Contingent conversion: | 120%
|
| Call protection: | Non-callable for seven years
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Cash settlement: | Yes
|
| Puts: | In years seven, 10 and 15
|
| Price talk: | 2.75%-3.25%, up 25%-30%
|
| Pricing date: | March 20, after the close
|
| Distribution: | Rule 144A
|
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