Nashville, Nov. 17 - Vector Group Ltd. sold $65.5 million of seven-year 5% convertible variable-rate notes at par with a 17.6% initial conversion premium via bookrunner Jefferies & Co.
The notes will pay the 5% coupon plus a portion of dividends on the underlying common stock at a minimum of 6.75% through November 2006.
The company must redeem a minimum of 12.5% of the issue in November 2009.
The Miami-based tobacco company plans to use proceeds to redeem the 10% senior secured notes due March 31, 2006, issued by subsidiary VGR Holding Inc. and for general corporate purposes.
| Issuer: | Vector Group Ltd.
|
| Issue: | Convertible variable-rate notes
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| Bookrunner: | Jefferies & Co.
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| Amount: | $65.5 million
|
| Greenshoe: | $16.375 million
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| Maturity: | Nov. 15, 2011
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| Coupon: | 5.0%
|
| Price: | Par
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| Yield: | Minimum of 6.75% through November 2006
|
| Conversion premium: | 17.6%
|
| Conversion price: | $19.57
|
| Conversion ratio: | 51.0986
|
| Pricing date: | Nov. 16, after market close
|
| Settlement date: | Nov. 18
|
| Distribution: | Rule 144A
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