ProAssurance $90 million convert talked to yield 3.75-4.25%, up 50-55%

By Ronda Fears

Nashville, June 30 - ProAssurance Corp. launched $90 million of 20-year convertibles talked to yield 3.75% to 4.25% with a 50% to 55% initial conversion premium.

Banc of America Securities is lead manager of the Rule 144A deal, which is scheduled to price after the market close Monday.

The subordinated notes will be noncallable for five years with puts in years five, 10 and 15.

There is a 120% contingent conversion trigger and 120% contingent payment trigger.

Proceeds will be used to repay outstanding debt under its existing term bank financing and general corporate purposes.

The Birmingham, Ala.-based insurance firm also said Monday that it expects operating income per share for second quarter at 22c to 27s. The company will announce results after the market close Aug. 11.

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