By Rebecca Melvin
New York, Aug. 3 - Teleflex Inc. priced $350 million of seven-year convertibles after the close of markets Tuesday at par to yield 3.875% with an initial conversion premium of 15%, according to a syndicate source.
There is a $50 million greenshoe.
The registered deal priced toward the cheap end of coupon talk, which was 3.5% to 4%, and at the cheap end of premium talk, which was 15% to 20%.
Goldman Sachs & Co., Jefferies & Co., Morgan Stanley & Co. Inc., Bank of America Merrill Lynch and J.P. Morgan Securities Inc. were the joint bookrunners for the deal.
The notes are convertible at a share price of $61.32.
A portion of the proceeds is earmarked to pay the cost of convertible note hedge transactions, with remaining proceeds being used to repay $200 million of term loan borrowings, to prepay all of Teleflex's outstanding senior notes issued in 2007 and to pay related transaction fees and expenses.
Teleflex expects to enter into privately negotiated convertible note hedge and warrant transactions.
The hedge transactions will cover the number of shares of Teleflex common stock that will initially underlie the convertible notes and are expected to reduce potential dilution with respect to Teleflex common stock and/or reduce Teleflex's exposure to potential cash payments that may be required to be made by Teleflex upon conversion.
The warrant transactions could have a dilutive effect or, if Teleflex so elects, obligate Teleflex to make cash payments to the extent that the market price per share of Teleflex common stock exceeds the applicable strike price of the warrants on any expiration date of the warrants.
Limerick, Pa.-based Teleflex is a provider of single-use medical devices, including catheters and surgical products.
| Issuer: | Teleflex Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Amount: | $350 million
|
| Greenshoe: | $50 million
|
| Maturity: | Aug. 1, 2017
|
| Bookrunners: | Goldman Sachs & Co., Jefferies & Co., Morgan Stanley & Co. Inc., Bank of America Merrill Lynch, J.P. Morgan Securities Inc.
|
| Coupon: | 3.875%
|
| Price: | Par
|
| Yield: | 3.875%
|
| Conversion premium: | 15%
|
| Conversion price: | $61.32
|
| Call protection: | Non-callable
|
| Puts: | No puts
|
| Price talk: | 3.5%-4%, up 15%-20%
|
| Pricing date: | Aug. 3
|
| Settlement date: | Aug. 9
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: TFX
|
| Stock reference price: | $53.93
|
| Market capitalization: | $2.2 billion
|
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