Actuant $100 million convertible talked at 2.0-2.5% yield, up 30-35%

By Ronda Fears

Nashville, Nov. 3 - Actuant Corp. launched $100 million of 20-year convertible notes talked to yield 2.0% to 5.25% with a 30% to 35% initial conversion premium.

The Rule 144A issue is slated to price after the close Tuesday.

Wachovia Securities is sole bookrunner of the deal. Goldman Sachs & Co. is co-manager.

The senior subordinated debentures will be non-callable for seven years, with cash puts in years seven, 10 and 15. Also, there is a 120% contingent conversion trigger.

There is a $25 million greenshoe available.

The convertible will rank pari passu with Actuant's 13% senior subordinated notes due 2009.

The company said proceeds would be used to repay a portion of the borrowings under its senior credit facility and for other general corporate purposes, which may include possible repurchases of the 13% notes, working capital and possible acquisitions.

Milwaukee-based Actuant is a global manufacturer and marketer of a broad range of industrial products and systems in two business segments - tools and supplies, and engineered solutions.

Actuant shares closed Monday up 76c, or 2.36%, to $33.

© 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.