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Southern Union $100 million mandatory talked with 5.0%-5.5% dividend, up 20%-25%
By Ronda Fears
Nashville, Feb. 7 - Southern Union Co. launched $100 million of three-year mandatory convertibles Monday with guidance for a 5.0% to 5.5% dividend and 20% to 25% initial conversion premium.
Bookrunners are JPMorgan Securities and Merrill Lynch. Pricing is slated for after the market close Wednesday.
There is dividend protection via a conversion ratio adjustment.
The non-callable mandatory has a par of $50. There is no greenshoe allotted.
The Wilkes-Barre, Pa.-based natural gas pipeline operator said it would use proceeds to repay debt incurred in connection with its investment in CCE Holdings LLC.
Also Monday, Southern Union announced that it had sold 14.9 million shares of common stock at $23 a share, for a total of $342.7 million, with those proceeds also earmarked to repay debt incurred in connection with its investment in CCE Holdings LLC. Southern Union stock closed Friday at $24.15.
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