St. Mary prices $250 million 20-year convertibles to yield 3.5%, up 48%

New York, March 29 - St. Mary Land & Exploration Co. priced $250 million of 20-year convertible senior notes after the close Thursday to yield 3.5% with a 48% initial conversion premium.

The deal came at the rich end of coupon talk of 3.5% to 4% and near the cheap end of premium talk of 47.5% to 52.5%.

The conversion price is $54.42.

There is an over-allotment option for a further $37.5 million.

Merrill Lynch and Wachovia Securities are the bookrunners of the Rule 144A offering.

The notes will be non-callable for the first five years. They may be put in years five, 10 and 15.

There will be a contingent conversion trigger at 130% of the conversion price and contingent payment at 120% of the principal.

The notes will have dividend and takeover protection.

There will be a net-share settlement feature.

St. Mary, a Denver-based oil and gas exploration company, said the proceeds of the deal will be used to repay outstanding revolving debt.

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