New Issue: St. Mary $75 million convertibles at 5.75% yield, up 30%

By Ronda Fears

Nashville, Tenn., March 8 - St. Mary Land & Exploration Co. sold $75 million of 20-year convertible senior notes at par to yield 5.75% with a 30% initial conversion premium. The Rule 144A deal, via lead manager Bear Stearns & Co., sold at the cheap end of price talk that put the yield at 5.25% to 5.75% and initial conversion premium between 30% and 35%.

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

Terms of the new deal are:

Issuer: St. Mary Land & Exploration Co.

Amount: $75 million

Greenshoe: $25 million

Lead Manager: Bear Stearns

Co-managers: Banc of America Securities, RBC Capital Markets, AG Edwards

McDonald Investments and Comerica Securities

Maturity Date: March 15, 2022

Coupon: 5.75%

Issue Price: par

Yield: 5.75%

Conversion Premium: 30%

Conversion Price: $26.00

Conversion Ratio: 38.4615

Call: non-callable for five years, then at par

Put: on March 20, 2007, in cash and/or stock; on March 15, 2012, and

March 15, 2017, in cash

Contingent Conversion: No

Contingent Payment: 120% hurdle

Settlement Date: March 13

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.