World Acceptance prices $100 million convertibles at 3%, up 35%

New York, Oct. 3 - World Acceptance Corp. priced $100 million of five-year convertible senior subordinated notes after the close Tuesday to yield 3% with an initial conversion premium of 35%.

The deal came at the rich end of revised talk which put the coupon between 3% and 3.125% and the initial conversion premium at 35%.

World Acceptance's sale was originally talked at a coupon of 3% to 3.5% and an initial conversion premium of 30% to 35%.

The conversion price is $62.41 and the conversion ratio is 16.0229.

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

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

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

There will be dividend and takeover protection.

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.

The hedge transactions increase the effective conversion price to $73.97 or a premium of 60% from the company's point of view.

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