By Kenneth Lim
Boston, Nov. 17 - RARE Hospitality International Inc. on Thursday priced $110 million of 20-year convertible senior notes within talk, at a coupon of 2.5% and an initial conversion premium of 30%.
The convertibles were offered at par, and were talked at a coupon of 2.5% to 3% and an initial conversion premium of 30% to 32%.
There is an over-allotment option for a further $15 million.
Wachovia Securities was the bookrunner of the Rule 144A offering.
The notes are non-callable for the first seven years, and may be put in years seven, 10 and 15.
There is a contingent conversion hurdle at 125% of the conversion price.
There is dividend and takeover protection.
RARE, an Atlanta-based restaurant operator, said it will use the proceeds to concurrently buy back its common stock, of which $61 million will be repurchased concurrently.
| Issuer: | RARE Hospitality International Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Wachovia Securities
|
| Amount: | $110 million
|
| Greenshoe: | $15 million
|
| Maturity: | Nov. 15, 2026
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 30%
|
| Conversion price: | $43.54
|
| Conversion ratio: | 22.9690
|
| Contingent conversion: | 125%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Nov. 21, 2013
|
| Puts: | Nov. 15, 2013; Nov. 15, 2016; Nov. 15, 2021
|
| Price talk: | 2.5%-3%, up 30%-32%
|
| Pricing date: | Nov. 16 after the close
|
| Settlement date: | Nov. 22
|
| Distribution: | Rule 144A
|
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