By Kenneth Lim
Boston, May 29 - Terex Corp. priced $150 million of six-year convertible senior unsecured notes on Thursday after the market closed at the rich end of talk to yield 4% with an initial conversion premium of 25% over a concurrent stock offering price of $13.
Priced talk was for a coupon of 4% to 4.5% and an initial conversion premium of 20% to 25%, market sources said.
There is an over-allotment option for an additional $22.5 million.
Credit Suisse, Citi and UBS Investment Bank are the bookrunners of the registered off-the-shelf offering.
The company concurrently priced $300 million of senior notes due 2016 with a coupon of 10.875% to yield 11 3/8% and $143 million, or 11 million shares at about $13 apiece, of its common stock. The common stock offering has a greenshoe of an additional 1.65 million shares, or about $21.45 million.
The convertibles will have a contingent conversion hurdle at 130%.
The convertibles are non-callable and may not be put.
There will be a net-share settlement feature.
Proceeds of the debt and equity offerings will be used to pay down outstanding amounts under a senior credit facility and for general corporate purposes.
| Issuer: | Terex Corp.
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunner: | Credit Suisse, Citi and UBS Investment Bank
|
| Amount: | $150 million
|
| Greenshoe: | $22.5 million
|
| Maturity: | June 1, 2015
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 25%
|
| Conversion price: | $16.25
|
| Conversion ratio: | 61.5385
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 4%-4.5%, up 20%-25%
|
| Pricing date: | May 28 after the close
|
| Settlement date: | June 3
|
| Distribution: | Registered
|
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