PrivateBancorp $70 million 20-year convertibles to price Thursday

By Kenneth Lim

Boston, March 8 - PrivateBancorp Inc. planned to price $70 million of 20-year convertible senior notes on Thursday after the market closed, talked at a coupon of 3.375% to 3.875% and an initial conversion premium of 22.5% to 27.5%.

The notes were offered at par.

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 first be put in year two.

There will be a contingent conversion hurdle at 130% of the conversion price.

The notes will have dividend and takeover protection.

There will be net-share settlement.

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, to buy back up to $10 million of its common stock and for general purposes.

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