Travelers $850 million mandatory convertibles talked at 4.75-5.25% yield, up 20-25%

By Ronda Fears

Nashville, Tenn., March 13 - Traveler's Property & Casualty Corp.'s 30-year mandatory convertibles in the upper DECS structure are expected to price to yield 4.75% to 5.25% with a 20% to 25% initial conversion premium. Salomon Smith Barney is lead manager of the deal, which is set to price next week along with the Traveler's IPO.

There is a $42.5 million greenshoe. The 20% spinoff from Citigroup is targeted to fetch $3.4 billion to $4 billion. The common stock is $16 to $19 each, with 210 million being sold.

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