By Sara Rosenberg
New York, Oct. 29 - Platinum Underwriters Holding Ltd. sold $125 million of three-year mandatory convertibles in the ACES (adjustable conversion rate equity security) structure at par of $25 to yield 7% and with a 22% initial conversion premium.
The deal priced at the rich end of talk which had put the yield at 7%-7½% and the conversion premium at 18%-22%.
The deal, led by Goldman Sachs & Co., Merrill Lynch & Co. and Salomon Smith Barney, priced after market hours on Monday.
The deal has an $18.75 million greenshoe.
The sale came alongside an initial public offering to spin off Platinum Underwriters from The St. Paul Cos. Inc. The straight equity component was 30.04 million shares priced at $22.50. Substantially all of the proceeds of the offerings will be contributed to the capital of Platinum's three operating subsidiaries.
Terms of the new deal are:
| Issuer: | Platinum Underwriters Holding Ltd.
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| Amount: | $125 million
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| Greenshoe: | $18.75 million
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| Lead managers: | Goldman Sachs, Merrill Lynch and Salomon Smith Barney
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| Maturity date: | Oct. 28, 2005
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| Coupon: | 7%
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| Price: | Par of $25
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| Yield: | | 7%
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| Conversion premium: | 22%
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| Conversion price: | $27.450
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| Conversion ratio: | 0.911
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| Call: | Non-callable
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| Put: | Non-putable
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| Ratings: | Moody's: NR
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| S&P: NR
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| Settlement date: | Nov. 1, 2002
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