By Rebecca Melvin
New York, Dec. 17 - TTM Technologies Inc. priced an upsized $220 million of seven-year convertible senior notes at par after the market close on Monday to yield 1.75% with an initial conversion premium of 25%, according to a term sheet.
The registered offering was initially talked at $150 million in size. There is also a $30 million greenshoe, which was upsized from $22.5 million of notes to cover over-allotments of the seven-year bullet bonds.
Pricing came at the midpoint of talk, which was for a 1.5% to 2% coupon and 22.5% to 27.5% premium.
J.P. Morgan Securities LLC and RBS Securities Inc. were the joint bookrunners.
The notes have takeover protection.
About $136.1 million of proceeds will be used to buy back about $131.6 million of the company's existing 3.25% convertible senior notes due 2015 and about $28.6 million will be used to pay the cost of a call spread.
Remaining proceeds will be used for general corporate purposes, including repaying debt, potential acquisitions, working capital and capital expenditures.
In connection with the offering, TTM entered into convertible note hedge and warrant transactions, or a call spread, aimed at reducing potential dilution of the stock upon conversion of the notes.
Santa Ana, Calif.-based TTM is a maker of printed circuit board, or PCB.
| Issuer: | TTM Technologies Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $220 million, upsized from $150 million
|
| Greenshoe: | $30 million, upsized from $22.5 million
|
| Maturity: | Dec. 15, 2020
|
| Bookrunners: | J.P. Morgan Securities LLC, RBS Securities Inc.
|
| Co-manager: | Barclays
|
| Coupon: | 1.75%
|
| Price: | Par
|
| Yield: | 1.75%
|
| Conversion premium: | 25%
|
| Conversion price: | $9.64
|
| Conversion ratio: | 103.7613 shares
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Call spread: | Yes
|
| Price talk: | 1.5%-2%, up 22.5%-27.5%
|
| Pricing date: | Dec. 16
|
| Settlement date: | Dec. 20
|
| Stock symbol: | Nasdaq: TTMI
|
| Stock reference price: | $7.71 at close Dec. 16
|
| Distribution: | Registered
|
| Market capitalization: | $637.2 million
|
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