Terra Industries overnight $75 million convertible preferreds talked at 3.75%-4.25%, up 20%-25%

By Ronda Fears

Nashville, Oct. 7 - Terra Industries Inc. launched an overnight $75 million of perpetual convertible preferreds after the close Thursday. The preferreds are talked to yield 3.75% to 4.25% with a 20% to 25% initial conversion premium.

Citigroup Global Markets Inc. is the sole bookrunner for the Rule 144A deal.

Forced conversion will be triggered after Dec. 20, 2009, if the stock is 140% of the initial conversion price for 20 of 30 trading days.

A $15 million greenshoe is available.

The Sioux City, Iowa, fertilizer company intends to use proceeds to redeem up to 35% of its existing 11½% second-priority senior secured notes due 2010 and for general corporate purposes.

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