By Evan Weinberger
New York, Jan. 16 - Pioneer Natural Resources Co. priced an upsized $440 million in 2.875% convertible senior notes due Jan. 15, 2038 with a 65% initial conversion premium Wednesday after market close.
The deal came in at the rich end of talk, which had been a 2.875% to 3.375% coupon and a 60% to 65% initial conversion premium. The deal was upsized from an originally announced $400 million.
Credit Suisse and UBS Investment Bank are the joint bookrunners of the Securities and Exchange Commission registered transaction.
There is a $60 million over-allotment option.
The settlement date is expected to be Jan. 22.
The initial conversion price is $72.60 and subject to adjustment. The initial conversion ratio is 13.7741, and it too is subject to adjustment.
If Pioneer stock is above the conversion price at the time of conversion, investors will receive up to 8.9532 additional shares, depending on a formula.
The convertibles are callable beginning Jan. 15, 2013. There are puts on Jan. 15 in each of 2013, 2018, 2023, 2028 and 2033.
The convertibles carry fundamental change and takeover protection and a net share settlement agreement.
Pioneer is a Dallas-based oil and gas driller. The company plans to use the proceeds to repay some of its outstanding bank debt.
Issuer: Pioneer Natural Resources Co.
Issue: Convertible senior notes
Amount: $440 million
Greenshoe: $60 million
Maturity: Jan. 15, 2038
Coupon: 2.875%
Price: Par
Yield: 2.875%
Conversion premium: 65%
| Conversion price: | $72.60
|
| Conversion ratio: | 13.7741
|
| Incremental share factor: | 8.9532
|
| Call: | Beginning Jan. 15, 2013
|
| Put: | Jan. 15 in each of 2013, 2018, 2023, 2028 and 2033
|
| Bookrunner: | Credit Suisse, UBS Investment Bank
|
| Pricing date: | Jan. 15
|
| Settlement date: | Jan. 22
|
| Talk: | Coupon 2.875%-3.375%, conversion premium 60%-65%, $400 million principal
|
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