By Kenneth Lim
Boston, March 30 - St. Mary Land & Exploration Co. priced $250 million of 20-year convertible senior notes within talk on Thursday to yield 3.5% with an initial conversion premium of 48%.
The notes were offered at par and priced after the market closed. They were talked at a coupon of 3.5% to 4% and an initial exchange premium of 47.5% to 52.5%.
There is an over-allotment option for a further $37.5 million.
Merrill Lynch and Wachovia Securities were the bookrunners of the Rule 144A offering.
The notes are non-callable for the first five years. They may be put in years five, 10 and 15.
There is a contingent conversion trigger at 130% of the conversion price and contingent payment at 120% of the principal.
The notes have dividend and takeover protection.
There is 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.
| Issuer: | St. Mary Land & Exploration Co.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Merrill Lynch and Wachovia Securities
|
| Amount: | $250 million
|
| Greenshoe: | $37.5 million
|
| Maturity: | April 1, 2027
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Conversion premium: | 48%
|
| Conversion price: | $54.42
|
| Conversion ratio: | 18.3757
|
| Contingent conversion: | 130%
|
| Contingent payment: | 120%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before April 6, 2012
|
| Puts: | April 1, 2012; April 1, 2017; April 1, 2022
|
| Price talk: | 3.5%-4%, up 47.5%-52.5%
|
| Pricing date: | March 29, after the close
|
| Settlement date: | April 4
|
| Distribution: | Rule 144A
|
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