Nashville, Feb. 27 - Veritas DGC Inc. sold $125 million of 20-year floating-rate convertible notes at par to yield three-month Libor minus 75 basis points with a 47% initial conversion premium via sole bookrunner Deutsche Bank Securities.
The Rule 144A deal, which was sold on swap with $20 million of proceeds earmarked to buy back stock from note purchasers, priced aggressively outside of yield talk for the three-month Libor minus 25 basis points to plus 25 basis points and at the rich end of premium guidance of 43% to 47%.
Holders will have full dividend protection.
Excluding the stock repurchases, Veritas DGC said it plans to use proceeds to prepay a portion of amounts outstanding under its existing bank credit facility.
Terms of the deal are:
| Issuer: | Veritas DGC Inc.
|
| Issue: | Convertible floating-rate notes
|
| Bookrunners: | Deutsche Bank Securities
|
| Amount: | $125 million
|
| Greenshoe: | $30 million
|
| Maturity: | March 2024
|
| Coupon: | Three-month Libor minus 75 bps
|
| Price: | Par
|
| Yield: | Three-month Libor minus 75 bps
|
| Conversion premium: | 47%
|
| Conversion price: | $24.03
|
| Conversion ratio: | 41.6146
|
| Contingent conversion: | 120%
|
| Call: | Non-callable for 5 years
|
| Put: | In years 5, 10 and 15
|
| Expected ratings: | Moody's: B1
|
| S&P: BB
|
| Price talk: | Three-month Libor minus 25 to plus 25 bps, up 43-47%
|
| Pricing date: | Feb. 26, after the close
|
| Settlement date: | March 3
|
| Distribution: | Rule 144A
|
|
|
© 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.
