RTI International plans $250 million 6.5-year convertibles to yield 1.625%-2.125%, up 30%-35%

By Rebecca Melvin

New York, April 11 - RTI International Metals Inc. launched an offering of $250 million of 6.5-year convertible senior notes seen pricing after the market close Thursday and talked to yield 1.625% to 2.125% with an initial conversion premium of 30% to 35%, according to market sources.

The registered offering has an option for up to $37.5 million of additional notes that bookrunners Barclays and Citigroup Global Markets Inc. can purchase.

The notes will be converted into shares, cash or a combination of both at the company's election.

The notes have contingent conversion if shares are at least 130% of the conversion price. They are non-callable with no puts. There is also takeover and dividend protection.

Proceeds are intended for working capital and general corporate purposes, including capital expenditures as well as potential future acquisitions and repurchases of existing convertible notes.

Pittsburgh-based RTI is a producer of titanium mill products.

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