By Rebecca Melvin
New York, April 15 - Sunrise Senior Living Inc. priced $75 million of 30-year junior subordinated convertible notes after the market close Thursday at par to yield 5% with an initial conversion premium of 20.5%, according to a news release.
The Rule 144A notes came at the midpoint of talk, which was for a 4.75% to 5.25% coupon and an 18% to 23% initial conversion premium.
There is a greenshoe of $11.25 million.
Stifel Nicolaus & Co. Inc. was the bookrunner, and KeyBanc Capital Markets LLC was a co-manager.
The notes are non-callable with no puts.
The notes are freely convertible until April 16, 2016, and then conversion rights may be terminated if shares are 130% of the conversion price for at least 20 out of 30 consecutive trading days.
There is dividend and takeover protection.
Proceeds will be used for general corporate purposes, including paying down joint-venture debt and funding the acquisition of joint ventures.
Sunrise is a provider of senior living services and is based in McLean, Va.
| Issuer: | Sunrise Senior Living Inc.
|
| Issue: | Convertible junior subordinated notes
|
| Amount: | $75 million
|
| Greenshoe: | $11.25 million
|
| Maturity: | April 1, 2041
|
| Bookrunner: | Stifel Nicolaus & Co.
|
| Co-manager: | KeyBank Capital Markets LLC
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 20.5%
|
| Conversion price: | $10.845
|
| Conversion ratio: | 92.2084
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Conversion rights: | Freely convertible until April 16, 2016, then conversion rights may be terminated subject to a 130% price hurdle
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 4.75%-5.25%, up 18%-23%
|
| Pricing date: | April 14
|
| Settlement date: | April 20
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: SRZ
|
| Stock reference price: | $9.00 at close April 14
|
| Market capitalization: | $502.6 million
|
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