Stillwater talks $165 million of 20-year convertibles at 1.875%-2.375%, up 22.5%-27.5% for Thursday

By Kenneth Lim

Boston, March 6 - Stillwater Mining Co. planned to price $165 million of 20-year convertible senior notes talked to yield 1.875% to 2.375% with an initial conversion premium of 22.5% to 27.5% on Thursday after the market closed.

There is an over-allotment option for a further $16.5 million.

Deutsche Bank is the bookrunner of the Rule 144A offering.

If the deal is fully subscribed, MMC Norilsk Nickel and its subsidiaries will buy $80 million of the offered convertibles.

The notes will be offered at par.

The convertibles will be non-callable for the first five years, with puts in years five, 10 and 15.

The notes will have dividend and takeover protection.

There are no contingent conversion or contingent payment features.

The notes will not have net-share settlement.

Stillwater, a Billings, Mont.-based producer of palladium and platinum, said it will use the proceeds of the deal to repay outstanding debt under a credit facility and for general corporate purposes.

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