By Rebecca Melvin
New York, Dec. 9 - RTI International Metals Inc. priced an upsized $200 million offering of five-year convertible bonds at par after the close Wednesday to yield 3% with a 32.5% initial conversion premium.
The registered deal was increased from the $175 million announced earlier in the day and came at the rich end of talk for a yield of 3% to 3.5% with an initial conversion premium of 27.5% to 32.5%.
There is a 15%, or $30 million, greenshoe, increased from $26.25 million originally.
The offering was brought to market via FBR Capital Markets & Co. and Citigroup Group Markets Inc. as the joint bookrunners, with Comerica Securities, KeyBanc Capital Markets and PNC Capital Markets LLC acting as the co-managers.
The conversion price is $35.91, and the conversion rate 27.8474 shares.
The five-year bullet has a maturity date of Dec. 1, 2015.
Settlement is scheduled for Dec. 14.
Conversion settlement will be in shares, cash or a combination of cash and shares.
Proceeds are earmarked for working capital and general corporate purposes, including capital expenditures and future acquisitions.
RTI International is a Pittsburgh-based producer of titanium mill products.
| Issuer: | RTI International Metals Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million, upsized from $175 million
|
| Greenshoe: | $30 million, upsized from $26.25 million
|
| Maturity: | Dec. 1, 2015
|
| Bookrunners: | FBR Capital Markets & Co., Citigroup Global Markets Inc.
|
| Co-managers: | Comerica Securities, KeyBanc Capital Markets, PNC Capital Markets LLC
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $35.91
|
| Conversion ratio: | 27.8474 shares per bond
|
| Takeover protection: | Yes, via make-whole table
|
| Price talk: | 3%-3.5%, up 27.5%-32.5%
|
| Pricing date: | Dec. 8
|
| Settlement date: | Dec. 14
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: RTI
|
| Stock reference price: | $27.10
|
| Market capitalization: | $820.74 million
|
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