By Ronda Fears
Memphis, May 24 - Spartan Stores Inc. priced an upsized $95 million of 20-year convertible senior notes on Wednesday to yield 3.375% with an initial conversion premium of 37%. The convertibles were offered at par.
The issue priced at the cheaper end of price talk that put the coupon at 3% to 3.5% and an initial conversion premium between 35% and 40%.
It was upsized from $75 million
There is an over-allotment option for a further $15 million, which is unchanged from original plans.
The convertibles are non-callable for five years. There are puts beginning in year seven.
The issue has a net share settlement feature.
Banc of America and Bear Stearns are the bookrunners of the Rule 144A offering.
Spartan, a Grand Rapids, Mich.-based grocery distributor, said it will use the proceeds to repay an outstanding revolving loan and fund working capital, capital expenditures and other general corporate purposes, which it said may include its acquisition of 20 Felpausch retail stores.
| Issuer: | Spartan Stores Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Banc of America and Bear Stearns
|
| Amount: | $95 million, up from $75 million
|
| Greenshoe: | $15 million, unchanged
|
| Maturity: | May 15, 2027
|
| Coupon: | 3.375%
|
| Price: | Par
|
| Yield: | 3.375%
|
| Conversion premium: | 37%
|
| Conversion price: | $35.67
|
| Conversion ratio: | 28.031
|
| Call: | Non-callable until May 20, 2012
|
| Puts: | Beginning May 15, 2014
|
| Net share settlement: | Yes
|
| Pricing date: | May 23
|
| Settlement date: | May 30
|
| Distribution: | Rule 144A
|
| Price talk: | Coupon: 3% to 3.5%
|
| Premium: 35% to 40%
|
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