By Rebecca Melvin
New York, July 9 - Regis Corp. priced an upsized $150 million of five-year convertible senior notes after the market close Wednesday at par to yield 5% with a 25% initial conversion premium, according to a syndicate source.
Initially, the registered convertible offering was going to be $125 million in size.
The notes priced at the midpoint of talk, which was 4.75% to 5.25% for the coupon with a premium of 22.5% to 27.5%.
There is a greenshoe of up to an additional $22.5 million.
Regis also priced 11.5 million of common stock at $12.37 per share, and this offering has a greenshoe of 1.725 million shares.
The convertible notes are non-callable for life and have no puts. Conversion is via cash, stock or a combination.
Proceeds from both offerings will be about $281.5 million and will be used to repay $267 million of private placement debt of varying maturities. Any remaining proceeds will be used for general corporate purposes, including the repayment of bank debt.
Merrill Lynch & Co. and Credit Suisse Securities (USA) LLC were joint bookrunners of both offerings.
Minneapolis-based Regis is a hair care salon franchise company.
| Issuer: | Regis Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $150 million, upsized from $125 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | July 15, 2014
|
| Bookrunners: | Merrill Lynch & Co. and Credit Suisse Securities (USA) LLC
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 25%
|
| Conversion price: | $15.46
|
| Conversion ratio: | 64.6726
|
| Price talk: | 4.75%-5.25%, up 22.5%-27.5%
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Pricing date: | July 8, after the close
|
| Settlement date: | July 14
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: RGS
|
| Stock reference: | $12.37
|
| Market capitalization: | $539.1 million
|
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