RPM International plans $200 million seven-year convertibles to yield 2.25%-2.75%, up 30%-35%

By Rebecca Melvin

New York, Dec. 2 - RPM International Inc. plans to price $200 million of seven-year convertible senior notes after the market close Tuesday. The notes are talked to yield 2.25% to 2.75% with an initial conversion premium of 30% to 35%, according to market sources.

The registered deal has a $5 million greenshoe and is being sold via joint bookrunners Wells Fargo Securities LLC and Goldman Sachs & Co.

The notes have contingent conversion if the company's shares rise to 135% of the conversion price.

They are non-callable until Dec. 20, 2017, and then provisionally callable if the shares rise to 125% of the conversion price. There is takeover protection.

Proceeds will be used to repay, redeem or refinance the company's $200 million of 6.25% unsecured senior notes due Dec. 15, 2013, with remaining proceeds to invest in high-quality, short-term investments.

The maker of specialty chemical products is based in Medina, Ohio.

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