By Kenneth Lim
Boston, Oct. 4 - World Acceptance Corp. priced $100 million of five-year convertible senior subordinated notes at the rich end of talk, with a coupon of 3% and an initial conversion premium of 35%.
The notes, which were offered at par, were priced Tuesday after the market closed. Price talk was revised to between 3% and 3.125% with an initial conversion premium of 35% on Tuesday, from the original guidance of a coupon between 3% and 3.5% with an initial conversion premium between 30% and 35%.
There is a greenshoe option for a further $10 million.
JP Morgan was the bookrunner 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.
| Issuer: | World Acceptance Corp.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | JP Morgan
|
| Amount: | $100 million
|
| Greenshoe: | $10 million
|
| Maturity: | Oct. 1, 2011
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 35%
|
| Conversion price: | $62.41
|
| Conversion ratio: | 16.0229
|
| Cash settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable for life
|
| Puts: | None
|
| Price talk: | 3%-3.125%, up 35%
|
| Pricing date: | Oct. 3 after the close
|
| Settlement date: | Oct. 10
|
| Distribution: | Rule 144A
|
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