By Rebecca Melvin
New York, June 19 - Assured Guaranty Ltd. priced $150 million of mandatory convertible equity units after the market close Thursday at par to yield 8.5% with a 17.5% initial conversion premium.
The registered units, with a stated amount of $50 per unit, came at the cheap end of talk, which was for a yield of 8% to 8.5% and an initial conversion premium of 17.5% to 22.5%.
The threshold appreciation price is $12.93.
Assured also priced 38.5 million shares at $11.00 each for a total of $423.5 million, upsized from $400 million. There is a greenshoe for a further 5.775 million shares.
There is a greenshoe for an additional $22.5 million of convertibles.
Merrill Lynch was the bookrunner for the convertibles offering, and Merrill Lynch and Deutsche Bank were joint bookrunners of the stock offering.
Proceeds of the equity units will be used to pay cash in lieu of common stock for part of the purchase price of its acquisition of Financial Security Assurance Holdings Ltd. Most of the stock offering will also be used to pay the cash purchase price of the acquisition.
Assured is a Hamilton, Bermuda, provider of credit enhancement for municipal finance, structured finance and mortgage markets.
| Issuers: | Assured Guaranty US Holdings Inc. and Assured Guaranty Ltd.
|
| Issue: | Mandatory convertible equity units
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | June 1. 2012
|
| Bookrunner: | Merrill Lynch
|
| Dividend: | 8.5%
|
| Price: | Par
|
| Yield: | 8.5%
|
| Conversion premium: | 17.5%
|
| Threshold appreciation price: | $12.93
|
| Minimum conversion rate: | 3.8685
|
| Maximum conversion rate: | 4.5455
|
| Price talk: | 8%-8.5%, up 17.5%-22.5%
|
| Pricing date: | June 18
|
| Settlement date: | June 24
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: AGO
|
| Stock reference: | $11.09
|
| Market capitalization: | $1.01 billion
|
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