Wyndham Worldwide to price $200 million convertibles to yield 3.25% to 3.75%, up 17.5% to 22.5%

By Rebecca Melvin

New York, May 12 - Wyndham Worldwide Corp. plans to price $200 million of three-year convertible notes after the close Wednesday. The offering is talked to yield 3.25% to 3.75% with an initial conversion premium of 17.5% to 22.5%, according to a market source.

Concurrently, Wyndham plans to price an offering of five-year senior unsecured straight notes. The amount will be determined upon pricing. Both offerings are registered, off the shelf deals.

There is a $30 million greenshoe to cover over-allotments for the convertibles.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc., Merrill Lynch & Co. and Citi are acting as joint bookrunners for the convertible notes offering.

The convertibles are non-callable with a standard change-of-control put.

Wyndham also plans to ender into convertible note hedge and warrant transactions with affiliates of one or more of the underwriters.

Other than a portion of proceeds to cover the hedge transaction costs, Wyndham plans to use proceeds of the convertibles to pay down its revolving credit facility.

Wyndham is a Parsippany, N.J.-based hospitality company.

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