Providian launches $150 million of converts, talked to yield 4.0-4.5%, up 55-60%

By Ronda Fears

Nashville, May 19 - Providian Financial Corp. launched $150 million of five-year non-callable convertible senior notes with guidance of a 4.0% to 4.5% coupon and a 55% to 60% initial conversion premium.

JPMorgan and Morgan Stanley are joint bookrunners for the deal, which is scheduled to price Tuesday after the market close. Deutsche Bank Securities Inc. and Goldman, Sachs & Co. are co-managers.

There is a contingent conversion trigger of 110% and a contingent payment trigger of 140% to 145%

There is a $22.5 million greenshoe available.

Providian shares closed down 83c, or 9%, to $8.40.

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