By Angela McDaniels
Tacoma, Wash., May 10 - Ryland Group Inc. priced $200 million of 1.625% convertible senior notes due 2018 with an initial conversion premium of 42.5%, according to a company news release.
The issue priced after the close on Thursday and was upsized from $150 million.
The registered, off-the-shelf deal was talked to yield 1.625% to 2.125% with an initial conversion premium of 37.5% to 42.5%, according to a syndicate source.
There is a $25 over-allotment option, which was upsized from an originally talked $22.5 million.
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint bookrunners, with UBS Securities LLC acting as co-manager.
The initial conversion price is $32.03.
The notes have no calls or puts, the source said.
Proceeds will be used for general corporate purposes, which may include the repayment or repurchase of debt.
Ryland is a Westlake Village, Calif.-based homebuilder.
| Issuer: | Ryland Group Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $25 million
|
| Maturity: | May 15, 2018
|
| Underwriters: | Citigroup Global Markets Inc. and J.P. Morgan Securities LLC (joint bookrunners), UBS Securities LLC (co-manager)
|
| Coupon: | 1.625%
|
| Price: | Par
|
| Yield: | 1.625%
|
| Conversion premium: | 42.5%
|
| Conversion price: | $32.03
|
| Conversion ratio: | 31.2168
|
| Call option: | None
|
| Put option: | None
|
| Pricing date: | May 10
|
| Settlement date: | May 16
|
| Stock symbol: | NYSE: RYL
|
| Stock price: | $22.48 at close May 10
|
| Market capitalization: | $1 billion
|
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