Tech Data to price $325 million 20-year convertibles overnight, talked at 2.75%, up 35%

By Kenneth Lim

Boston, Dec. 14 - Tech Data Corp. plans to price $325 million of 20-year convertible senior debentures on Friday before the market opens, talked at a coupon of 2.75% and an initial conversion premium of 35%.

There is an over-allotment option for a further $25 million.

Banc of America Securities is the bookrunner for the overnight registered off-the-shelf offering.

The debentures will be non-callable for the first five years and may be put in years five, 10 and 15.

The debentures will have a contingent conversion hurdle at 135% of the conversion price and a contingent payment hurdle at 120% of the principal.

There will be dividend and takeover protection.

The convertibles will have a net-share settlement feature.

Tech Data, a Clearwater, Fla.-based distributor of information technology products and logistics management services, said it will use the proceeds of the deal to retire short-term debt and for general purposes.

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