By Rebecca Melvin
New York, April 12 - RTI International Metals Inc. priced an upsized $350 million of 6.5-year convertible senior notes at par late Thursday to yield 1.625% with an initial conversion premium of 35%, according to a prospectus.
The registered offering was initially going to be $250 million in size. Pricing came at the rich end of talk, which was for a coupon of 1.625% to 2.125% and a premium of 30% to 35%.
The underwriters' option to purchase additional convertibles was upsized to $52.5 million from $37.5 million.
Joint bookrunners were Barclays and Citigroup Global Markets Inc.
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.
About $132.1 million of the proceeds will be used to repurchase about $115.6 million of RTI's existing 3% convertible notes due 2015. Remaining proceeds will be used for working capital and general corporate purposes, including capital expenditures and potential future acquisitions.
Pittsburgh-based RTI is a producer of titanium mill products.
| Issuer: | RTI International Metals Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $350 million, upsized from $250 million
|
| Greenshoe: | $52.5 million, upsized from $37.5 million
|
| Maturity: | Oct. 15, 2019
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc.
|
| Senior co-managers: | FBR Capital Markets & Co., Stifel, Nicolaus & Co. Inc.
|
| Co-managers: | PNC Capital Markets LLC, Fifth Third Securities Inc., Comerica Securities Inc., RBS Securities Inc.
|
| Coupon: | 1.625%
|
| Price: | Par
|
| Yield: | 1.625%
|
| Conversion premium: | 35%
|
| Conversion price: | $40.72
|
| Conversion ratio: | 24.5604
|
| Contingent conversion: | Yes, at 130%
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Net share settlement: | Yes
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 1.625%-2.125%, up 30%-35%
|
| Pricing date: | April 11
|
| Settlement date: | April 17
|
| Stock symbol: | NYSE: RTI
|
| Stock price: | $30.16 at close April 11
|
| Distribution: | Registered
|
| Market capitalization: | $905.6 million
|
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