ShengdaTech plans to price $90 million five-year convertibles to yield 6%-6.5%, up 20%-25%

By Rebecca Melvin

New York, Dec. 9 - ShengdaTech Inc. planned to price $90 million of five-year convertible senior notes at par after the market close Thursday that were talked to yield 6% to 6.5% with an initial conversion premium of 20% to 25%, according to a syndicate source.

The Rule 144A deal will be sold via bookrunner Morgan Stanley and co-manager Oppenheimer & Co.

There is a greenshoe for an additional $30 million of notes.

At least $62 million of the proceeds will be used to buy back ShengdaTech's existing convertible notes due 2018.

Proceeds will also be used to finance its nano-precipitated calcium carbonate production capacity expansion, for research and development and for other working capital requirements.

Based in Tai'an City, China, the company makes and markets NPCC and coal-based chemicals. The products are used in various applications, including tires and polyvinyl chloride, or PVC, building materials.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.