Provident $150 million mandatory convertibles talked at 8.5-9.0% yield, up 18-22%

By Ronda Fears

Nashville, Tenn., June 3 - Provident Financial Group Inc.'s $150 million of three-year mandatory convertibles in the Prides structure are talked to yield 8.5% to 9.0% with an 18% to 22% initial conversion premium. The deal is set to price Thursday via lead manager Merrill Lynch & Co.

The convert is to be jointly issued with Provident's PFGI Capital Corp. subsidiary, a commercial mortgage REIT.

The Cincinnati, Ohio-based banking and financial services company will use proceeds for general corporate purposes and PFGI Capital will use proceeds to buy participation interests in commercial mortgage loans.

The convertible will be non-callable.

There is a $25 million greenshoe.

Provident Financial shares closed down $1.37 to $28.11.

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