New York, Jan. 26 – Horizon Global Corp. priced an upsized $110 million of five-year convertible senior notes with a 2.75% coupon and a 35% initial conversion premium.
The deal was increased from the originally announced $100 million and came at the rich end of talk for a yield of 2.75% to 3.25% and richer than talk for a premium of 27.5% to 32.5%.
Concurrently, Horizon Global priced 4 million shares of common stock at $18.50 per share.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch and BMO Capital Markets are the joint bookrunners for the convertibles.
The notes have a $15 million over-allotment option, unchanged from the size initially planned.
The notes are contingently convertible into cash, common stock or a combination.
Proceeds from the convertibles and stock will be used to repay $157.5 million of Horizon Global’s term loan, a paydown increased by $147.5 million due to the upsizing.
Remaining funds raised from the convertibles will be used to pay for convertible note hedge transactions.
Horizon Global is a Troy, Mich.-based designer, manufacturer and distributer of a range of towing, trailering, cargo management, and other related accessory products to the automotive aftermarket, retail, and original equipment channels worldwide.
| Issuer: | Horizon Global Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $110 million
|
| Greenshoe: | $15 million
|
| Maturity: | July 1, 2022
|
| Coupon: | 2.75%
|
| Initial conversion premium: | 35%
|
| Conversion price: | $24.98
|
| Conversion rate: | 40.0400
|
| Net share settlement: | Yes
|
| Contingent conversion: | Yes
|
| Call: | Non-callable
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch and BMO Capital Markets
|
| Pricing date: | Jan. 26, after close
|
| Settlement date: | Feb. 1
|
| Price talk: | 2.75% to 3.25%, up 27.5% to 32.5%
|
| Stock symbol: | NYSE: HZN
|
| Stock price: | $18.76 at close on Jan. 26, $18.50 for concurrent stock sale
|
| Market capitalization: | $394 million
|
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