By Ronda Fears
Nashville, Tenn., July 26 - St. Paul Cos. Inc. sold an upsized $385 million of three-year mandatory convertibles at par of 50 to yield 9.0% with a 20% initial conversion premium.
The deal, via joint book-runners Merrill Lynch & Co. and Salomon Smith Barney, sold at the middle of guidance in a quick-sale transaction and was boosted from a planned $375 million.
Price talk had put the dividend between 8.75% and 9.25% yield with the initial conversion premium between 18% and 22%.
The St. Paul, Minn.-based insurance company also sold 15.5 million common shares at $24.20 each for proceeds of another $375.1 million.
Proceeds are earmarked for contributions of capital to its insurance underwriting subsidiaries, with any in excess of $750 million to be used for general corporate purposes.
Terms of the new deal are:
| Issuer: | St. Paul Cos. Inc.
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| Amount: | $385 million
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| Greenshoe: | $57.75 million
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| Lead Managers: | Merrill Lynch and Salomon Smith Barney
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| Maturity Date: | Aug. 16, 2005
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| Dividend: | 9.0%
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| Issue Price: | par, $50
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| Yield-to-maturity: | 9.0%
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| Conversion Premium: | 20%
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| Conversion Price: | $24.20/$29.04
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| Conversion Ratio: | 1.7218/2.0661
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| Call: | non-callable
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| Settlement Date: | July 31
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