RadioShack to price $300 million five-year convertibles, talked 2.5%-3%, up 27.5%-32.5%

By Rebecca Melvin

New York, Aug. 11 - RadioShack Corp. plans to price $300 million of five-year convertible senior notes after the market close Tuesday to yield 2.5% to 3% with an initial conversion premium of 27.5% to 32.5%, a market source said.

The Rule 144A deal is being sold via joint bookrunners Citigroup and Banc of America Securities LLC and co-managers Merrill Lynch, Wachovia and Wells Fargo.

There is a $50 million over-allotment option.

The notes are non-callable for life with no puts.

Proceeds are intended to pay for the net cost of the convertible note hedge and warrant transactions and to fund a share repurchase. The remaining proceeds will be used for general corporate purposes.

Based in Forth Worth, Texas, RadioShack is a consumer electronics goods and services retailer.

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