World Acceptance to price $100 million of five-year convertibles, talked at 3%-3.5%, up 30%-35%

By Kenneth Lim

Boston, Oct. 2 - World Acceptance Corp. plans to price Tuesday after the market closes $100 million of five-year convertible senior subordinated notes, talked at a coupon of 3% to 3.5% and an initial conversion premium of 30% to 35%.

The notes will be offered at par.

There is a greenshoe option for a further $10 million.

Jefferies & Co. and BMO are the bookrunners of the Rule 144A offering.

The notes will be non-callable for life, and have no puts.

World Acceptance, a Greenville, S.C.-based consumer finance company, plans to use $8.7 million of the proceeds to enter into convertible note hedge and warrant transactions, and to buy back up to $50 million of its common stock. It will also repay part of its existing senior secured revolving loan.

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