By Sara Rosenberg
New York, May 1 - UnumProvident Corp. priced $500 million of three-year mandatory units at to yield 8.25% at an initial conversion premium of 22% after the close Thursday.
The deal came at the rich end of talk which put it at an 8.25% to 8.75% yield with an 18% to 22% initial conversion premium.
Goldman, Sachs & Co. was bookrunner with Banc of America Securities LLC, and Morgan Stanley as joint lead managers. Deutsche Bank Securities, Merrill Lynch & Co. and SunTrust Robinson Humphrey acted as co-managers.
The Chattanooga, Tenn. holding company for insurance and non-insurance companies also priced $500 million of stock and will use proceeds from both offerings to reduce inter-company loans and increase the capitalization of the company's insurance subsidiaries.
Terms of the new deal are:
| Issuer: | UnumProvident Corp.
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| Amount: | $500 million
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| Issue: | Adjustable conversion rate mandatory units
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| Lead managers: | Goldman Sachs (books), Banc of America and Morgan Stanley
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| Maturity: | 2006
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| Coupon: | 8.25%
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| Issue price: | Par
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| Yield: | 8.25%
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| Conversion premium: | 22%
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| Conversion price: | $13.27
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| Settlement date: | May 7, 2003
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