Rayonier prices $150 million six-year exchangeables to yield 4.5%, up 22.5%

New York, Aug. 6 - Rayonier Inc. subsidiary Rayonier TRS Holdings priced $150 million of six-year exchangeable senior notes Thursday after the market close to yield 4.5% with a 22.5% initial conversion premium.

The deal came richer than talk for a yield of 4.75% and 5.25% with an initial conversion premium of 17.5% to 22.5%.

The conversion price is $50.24 and the exchange ratio 19.9055.

Settlement is scheduled for Aug. 12.

The notes will be exchangeable into the parent's common stock.

There is an over-allotment option for an additional $22.5 million.

The bookrunners for the Rule 144A sale are Credit Suisse, JPMorgan and Merrill Lynch.

The notes are non-callable and may not be put except in a takeover.

There is a contingent conversion trigger at 130% of the conversion price.

The convertibles have standard dividend and takeover protection.

Proceeds will be used to repay debt and to fund exchangeable note hedge and warrant transactions. They will raise the effective exchange price to $60 from the issuer's viewpoint.

Rayonier is a Jacksonville, Fla.-based forest products company.

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