Livent talks $225 million five-year convertible notes to yield 3.625%-4.125%, up 35%-40%

By Abigail W. Adams

Portland, Me., June 22 – Livent Corp. plans to price $225 million of five-year convertible notes after the market close on Monday with price talk for a coupon of 3.625% to 4.125% and an initial conversion premium of 35% to 40%, according to a market source.

Citigroup Global Markets Inc. and BofA Securities Inc. are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $33.75 million.

The notes are non-callable for three years and then subject to a 130% hurdle with a make-whole.

The notes will be settled in cash, shares or a combination of both at the company’s option.

There is takeover and dividend protection.

The convertible notes will be green bonds. Proceeds will be used to repay outstanding amounts under its revolving credit facility to refinance eligible green projects.

Remaining proceeds will be used for eligible green projects within two years of issuance.

Livent is a Philadelphia-based lithium-based battery maker.

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