UBS' $180 million mandatories exchangeable into Stillwater Mining talked at 9.25%-9.75%, up 15%-20%

By Rebecca Melvin

New York, Nov. 29 - UBS AG plans to price $180 million of 18-month mandatory exchangeables that are exchangeable into shares of Stillwater Mining Co. The offering is talked to yield 9.25% to 9.75% with an initial conversion premium of 15% to 20%, according to a market source.

The registered offering for 7.84 million of exchangeable notes, with a $25 par, was expected to price via bookrunner UBS Securities LLC on Dec. 7. There is a $20 million greenshoe for an additional 1.16 million exchangeable notes.

The mandatories will be sold concurrently with a secondary offering of common stock by its majority stockholder Norimet Ltd. There is a greenshoe for up to an additional 3.8 million of shares.

If the offerings are successfully placed, the selling stockholder's ownership of outstanding shares of Stillwater's common stock following these transactions would be less than 10%, or reduced to zero if the over-allotment option for both offerings is exercised in full.

Stillwater Mining will not receive any proceeds from either transaction.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, UBS Securities LLC and VTB Capital plc are acting as joint bookrunners for the underwritten public offering of the common stock.

Stillwater Mining is a Billings, Mont.-based palladium and platinum producer.

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