St. Mary $75 million convertible notes talked at 5.25-5.75% yield, up 30-35%

By Ronda Fears

Nashville, Tenn., March 6 - St. Mary Land & Exploration Co.'s $75 million of 20-year convertible senior notes are talked to yield 5.25% to 5.75% with a 30% to 35% initial conversion premium.

Bear Stearns & Co. is bookrunning lead manager of the Rule 144A deal. Banc of America Securities is joint lead manager.

The deal is set to price after the close Thursday.

The 20-year issue will be non-callable for five years with puts in years five, 10 and 15. There is a contingent conversion feature with a 120% hurdle, but the conversion ratio will be adjusted in the event of a common stock dividend. There is a $15 million greenshoe available.

Denver, Colo.-based St. Mary said proceeds will be used initially to repay its bank revolver and then fund 2002 capital expenditures.

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