By Ronda Fears
Nashville, Tenn., June 7 - Provident Financial Inc. sold $150 million of three-year mandatory convertible securities in the PRIDES structure at par of 25 to yield 9.0% with a 19% initial conversion premium. The deal, via lead manager Merrill Lynch & Co., priced at the cheap end of yield guidance and at the midpoint of premium price talk.
Price talk put the yield at 8.5% to 9.0% with a premium of 18% to 22%.
The deal was jointly issued with PFGI Capital Corp. subsidiary, a commercial mortgage REIT.
The Cincinnati, Ohio banking and financial services company plans to use proceeds for general corporate purposes and PFGI Capital will use proceeds to buy participation interests in commercial mortgage loans.
Terms of the new deal are:
| Issuer: | Provident Financial Inc.
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| Amount: | $150 million
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| Greenshoe: | $25 million
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| Lead Manager: | Merrill Lynch
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| Maturity Date: | Aug. 17, 2005
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| Dividend: | 9.0%
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| Issue Price: | par, $25
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| Yield-to-maturity: | 9.0%
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| Conversion Premium: | 19%
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| Conversion Price: | $24.42/$29.06
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| Conversion Ratio: | 0.8603/1.0238
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| Call: | Non-callable
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| Settlement Date: | June 12
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