Regis to price $125 million five-year convertibles to yield 4.75%-5.25%, up 22.5%-27.5%

By Rebecca Melvin

New York, July 6 - Regis Corp. plans to price $125 million of five-year convertible senior notes after the market close on Wednesday, which are talked to yield 4.75% to 5.25%, with an initial conversion premium of 22.5% to 27.5%, according to a syndicate source.

The registered convertible notes have a greenshoe of up to an additional $18.75 million.

Regis also plans to price 11.5 million of common stock. This offering, which is not contingent on the convertible offering, has a greenshoe of 1.725 million shares.

The convertible notes are non-callable for life and have no puts.

Proceeds will be used to repay $267 million of private placement debt of varying maturities, with remaining proceeds earmarked for general corporate purposes, including the repayment of bank debt.

Merrill Lynch & Co. and Credit Suisse Securities (USA) LLC are joint bookrunners of both offerings.

Minneapolis-based Regis is a hair care salon franchise company.

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