By Sara Rosenberg
New York, March 30 - Vector Group Ltd. sold a $25 million add-on at a price of 107 to its 5% variable interest senior convertible notes due 2011 via bookrunner Jefferies & Co.
Terms are the same as those of the $65.5 million deal with a $16.375 million greenshoe priced on Nov. 16, 2004.
The sale has a $5 million greenshoe.
The notes mature in November 2011 but 12.5% of the amount outstanding must be redeemed in November 2009. There is also a put in November 2009.
Interest is 5% a year with an additional amount based on cash dividends subject to a minimum of 6.75% through November 2006.
The Miami-based tobacco company plans to use proceeds for general corporate purposes including repaying credit facility borrowings.
Terms of the deal are:
| Issuer: | Vector Group Ltd.
|
| Issue: | Convertible senior notes
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| Bookrunner: | Jefferies & Co.
|
| Amount: | $25 million
|
| Greenshoe: | $5 million
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| Maturity: | Nov. 15, 2011
|
| Coupon: | 5%
|
| Price: | 107
|
| Yield: | Minimum of 6.75% through November 2006
|
| Conversion price: | $19.40
|
| Call: | 12.5% must be redeemed in 2009
|
| Put: | 2009
|
| Pricing date: | March 30, after market close
|
| Settlement date: | April 13
|
| Distribution: | Rule 144A
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