By Rebecca Melvin
New York, April 30 - Textron Inc. priced an upsized $540 million of four-year convertible senior notes after the close of markets on Wednesday at par to yield 4.5% with an initial conversion premium of 25%, according to a news release.
Initially the deal was talked to be $300 million in size.
The bonds priced through the aggressive end of talk for the coupon, which was 5.25% to 5.75%, and at the aggressive end of talk for the initial conversion premium, which was 20% to 25%.
The $45 million over-allotment option was upsized to $60 million.
Concurrently, Textron priced an upsized 20.7 million of common stock at $10.50 a share. The offering was originally going to be for 19 million shares
There is a greenshoe of up to an additional 3.105 million shares of stock.
Total gross proceeds from the offerings will be about $757 million, according to the release.
J.P. Morgan Securities Inc. and Goldman Sachs & Co. were joint bookrunners of the registered offerings.
The bonds, with a $1,000 par, will be non-callable for life, with no puts. They will be convertible, under certain circumstances, into cash, shares of stock, or a combination of both at the option of Textron.
Proceeds will be used to repay debt and to purchase a call spread.
In connection with the convertibles offering, Textron plans to enter into convertible note hedge and warrant transactions with one or more of the underwriters.
Textron is an aircraft, industrial and finance company based in Providence, R.I.
| Issuer: | Textron Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $540 million, upsized from $300 million
|
| Greenshoe: | $60 million, upsized from $45 million
|
| Maturity: | May 1, 2013
|
| Bookrunners: | J.P. Morgan Securities Inc. and Goldman Sachs & Co.
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $13.125
|
| Conversion ratio: | 76.1905
|
| Price talk: | 5.25%-5.75%, up 20%-25%
|
| Call: | Non-callable for life
|
| Puts: | No puts, except takeover put
|
| Pricing date: | April 29, after the close
|
| Settlement date: | May 5
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: TXT
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
