PrivateBancorp to price $70 million 20-year convertibles, talked at 3.375%-3.875%, up 22.5%-27.5%

By Kenneth Lim

Boston, March 7 - PrivateBancorp Inc. plans to price $70 million of 20-year convertible senior notes, talked at a coupon of 3.375% to 3.875% and an initial conversion premium of 22.5% to 27.5%.

The timing of the deal was not disclosed, but market sources said it was not expected to be an overnight offering.

There is an over-allotment option for a further $10.5 million.

RBC Capital Markets is the bookrunner of the Rule 144A offering.

The notes will be non-callable for the first two years and may be put in year two.

There will be a contingent conversion feature.

The notes will have dividend and takeover protection.

There will be a net-share settlement feature.

PrivateBancorp, a Chicago-based banking services company, said it will use the proceeds to pay back up to $41.5 million of existing senior debt, buy back up to $10 million of its common stock and for general purposes.

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