By Kenneth Lim
Boston, April 12 - The TriZetto Group Inc. priced $230 million of five-year convertible senior notes near the rich end of talk on Wednesday, selling them to yield 1.125% with an initial conversion premium of 17.5%. The size of the deal includes $30 million of an over-allotment option that was immediately exercised.
The deal was talked at a coupon of 1.125% to 1.625% and an initial conversion premium of 15% to 20%. The convertibles were offered at par.
Deutsche Bank, Goldman Sachs and UBS Investment Bank were the bookrunners of the Rule 144A offering.
The convertibles are non-callable and may not be put.
There is a contingent conversion trigger at 130% of the conversion price.
There is a net-share settlement option.
The notes have dividend and takeover protection.
TriZetto, a Newport Beach, Calif.-based provider of information technology solutions for the healthcare and insurance sectors, said it will use the proceeds of the deal to fund convertible note hedge and warrant transactions and to fund general purposes, which may include debt repayment, stock buybacks or acquisitions.
| Issuer: | The TriZetto Group Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Deutsche Bank, Goldman Sachs and UBS Investment Bank
|
| Amount: | $230 million, including $30 million greenshoe already exercised
|
| Greenshoe: | $30 million, already exercised
|
| Maturity: | April 15, 2012
|
| Coupon: | 1.125%
|
| Price: | Par
|
| Yield: | 1.125%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $21.97
|
| Conversion ratio: | 45.5114
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 1.125%-1.625%, up 15%-20%
|
| Pricing date: | April 11 after the close
|
| Settlement date: | April 17
|
| Distribution: | Rule 144A
|
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