Regal-Beloit $100 million convertible talked at 2.5-3.0% yield, up 25-30%

By Ronda Fears

Nashville, March 29 - Regal-Beloit Corp. launched $100 million of 20-year convertible notes talked to yield 2.5% to 3.0% with a 25% to 30% initial conversion premium.

Banc of America Securities is the lead manager of the Rule 144A deal, which is scheduled to price after the close Tuesday. Deutsche Bank Securities, Wachovia Securities and Robert W. Baird & Co. Inc. are co-managers.

The senior subordinated notes will be non-callable for five years with puts in years five, 10 and 15. There is a 130% contingent conversion trigger and a 120% contingent payment trigger.

Beloit, Wis.-based Regal-Beloit makes industrial electric motors and tools.

Regal-Beloit shares closed Monday up 51 cents, or 2.4%, to $21.75.

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