New Issue: Reebok $300 million convertible yields 2.0%, up 35%

Nashville, April 27 - Reebok International Ltd. sold $300 million of 20-year convertible senior notes at par to yield 2.0% with a 35% initial conversion premium via sole bookrunner Credit Suisse First Boston.

The Rule 144A deal priced at the middle of yield talk for a 1.75% to 2.25% coupon and at the cheap end of premium guidance of 35% to 40%.

The Canton, Mass.-based shoemaker intends to use proceeds to refinance existing debt, repurchase stock and finance acquisitions, including the proposed purchase of The Hockey Co. Holdings Inc., as well as for general corporate purposes. Reebok intends to redeem its $250 million of 4.25% convertible debentures due 2021.

Terms of the deal are:

Issuer:	Reebok International Ltd.
Issue:	Convertible senior notes
Bookrunner:	Credit Suisse First Boston
Amount:	$300 million
Greenshoe:	$50 million
Maturity:	May 1, 2024
Coupon:	2.0%
Price:	Par
Yield:	2.0%
Conversion premium:	35%
Conversion price:	$51.26
Conversion ratio:	19.5086
Contingent conversion:	125%
Call:	Non-callable for 5 years
Put:	In years 5, 10 and 15
Price talk:	1.75-2.25%, up 35-40%
Pricing date:	April 26, after the close
Settlement date:	May 3
Distribution:	Rule 144A

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.