SWS scraps $95 million convertibles sale, cites poor market condition

By Susanna Moon

Chicago, Dec. 8 - SWS Group, Inc. said in a press release that it terminated its planned registered offering of $95 million principal amount of five-year convertible senior notes, "due to recent volatility and unfavorable market conditions."

SWS had planned to price $95 million of convertibles after the market close on Wednesday, according to a market source.

As previously reported, the convertibles were talked to yield 6% to 7.5% with an initial conversion premium of 20% to 30%.

The off-the-shelf offering also had an over-allotment option for up to $14.25 million of additional notes.

Proceeds were to be used as a capital contribution to its banking subsidiary, with any remaining proceeds used for general corporate purposes, which could include additional capital contributions to its banking subsidiary.

Bank of America Merrill Lynch was the bookrunner.

SWS Group is a Dallas securities and banking company.

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