TTM to price $125 million seven-year convertibles, talked to yield 3%-3.5%, up 25%-30%

By Rebecca Melvin

New York, May 8 - TTM Technologies Inc. planned to price $125 million of seven-year convertible senior notes after the market close on Thursday, according to a syndicate source.

The off-the-shelf offering was talked to yield 3% to 3.5% with an initial conversion premium of 25% to 30%. There is an option to purchase up to an additional $18.75 million of notes to cover over-allotments of the seven-year bullet bonds.

J.P. Morgan Securities Inc. and UBS Investment Bank are joint bookrunners.

Proceeds are expected to be used to repay a term loan under its senior credit facility in full and for general corporate purposes, including potential acquisitions.

Also in connection with the offering, TTM expects to enter into convertible note hedge transactions aimed at reducing potential dilution of the stock upon conversion of the notes.

TTM will also enter into warrant transactions concurrently with the offering, which would result in additional proceeds to TTM. A portion of net proceeds will be used to pay the cost of the convertible note hedge transactions. This cost will be partially offset by proceeds that TTM expects to receive from the sale of the warrants.

TTM expects to use a portion of proceeds to pay the net cost of the convertible note hedge transactions and warrant transactions.

The maker of printed circuit board, or PCB, is based in Santa Ana, Calif.

© 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.