By Rebecca Melvin
New York, Dec. 10 - ShengdaTech Inc. priced an upsized $130 million of five-year convertible senior notes at par after the market close Thursday to yield 6.5% with an initial conversion premium of 20%, according to a syndicate source.
Deal size for the Rule 144A offering included a $30 million greenshoe that was exercised at pricing. The original base deal was expected to be $90 million in size.
Pricing came at the cheap end of talk, which was for a 6% to 6.5% coupon and 20% to 25% initial conversion premium.
Morgan Stanley was the bookrunner of the deal, with Oppenheimer & Co. acting as the co-manager.
About $67 million of proceeds is expected to be used to buy back ShengdaTech's existing convertible notes due 2018.
Remaining proceeds will be used to finance the company's nano-precipitated calcium carbonate production capacity expansion, research and development and working capital.
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.
| Issuer: | ShengdaTech Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $130 million, upsized from $90 million
|
| Greenshoe: | Initially talked $30 million greenshoe exercised at pricing
|
| Maturity: | Dec. 15, 2015
|
| Bookrunner: | Morgan Stanley
|
| Co-manager: | Oppenheimer & Co.
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 20%
|
| Conversion price: | $6.07
|
| Conversion ratio: | 164.6904
|
| Calls: | No calls
|
| Puts: | On Dec. 15, 2013
|
| Takeover protection: | Yes, via make-whole table
|
| Price talk: | 6%-6.5%, up 20%-25%
|
| Pricing date: | Dec. 9
|
| Settlement date: | Dec. 14
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: SDTH
|
| Stock reference price: | $5.06
|
| Market capitalization: | $276.97 million
|
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