By Ronda Fears
Nashville, Tenn., Feb. 1 - Acxiom Corp. sold $160 million of seven-year convertible subordinated bonds at par to yield 3.75% and a 30% initial conversion premium. JPMorgan was lead manager of the Rule 144A issue, which priced at the rich end of yield talk of 3.75% to 4.25% and more aggressive than premium guidance of 23% to 27%. The deal was also upsized from $150 million.
Little Rock, Ark.-based Acxiom, which provides customer data integration software, database management services and customer data content, plans to use proceeds of the new issue to redeem its $115 million of 5.25% convertible subordinated notes due 2003 and $25.7 million of 6.92% senior notes due 2007. The company said the purpose of the offering is to improve its capital structure by replacing near-term obligations with long-term obligations by allowing the company to replace higher cost debt with lower cost debt. Simultaneously with the offering, the company intends to amend and restate its $265 million revolving credit facility to a $175 million credit facility and extend the maturity of the facility from December 2002 to January 2005.
Terms of the new deal are:
Issuer: Acxiom Corp.
Amount: $160 million
Greenshoe: $15 million
Lead Manager: JPMorgan
Maturity Date: Feb. 15, 2009
Coupon: 3.75%
Issue Price: par
Yield: 3.75%
Conversion Premium: 30%
Conversion Price: $18.252
Conversion Ratio: 54.7885
Call: non-callable for three years
Put: in year five
Rating(s): Moody's: Ba3
| S&P: BB-
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| Settlement Date: | Feb. 6
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