Parsons talks $700 million five-year convertible notes to yield 2.625%, up 25%

By Abigail W. Adams

Portland, Me., Feb. 21 – Parsons Corp. plans to price $700 million of five-year convertible notes after the market close on Wednesday with price talk for a fixed coupon of 2.625% and a fixed conversion premium of 25%, according to a market source.

BofA Securities Inc. (lead left), Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $100 million.

HudsonWest LLC is active as financial adviser to the company.

The notes are non-callable until March 8, 2027 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

In connection with the offering, the company will enter into capped call transactions.

The company will also repurchase a portion of its 0.25% convertible notes due 2025 in privately negotiated transactions.

Proceeds will be used to cover the cost of the call spread, to fund the repurchase of the 0.25% convertible notes and for general corporate purposes.

Parsons is a Chantilly, Va.-based technology company serving the defense, intelligence and critical infrastructure markets.

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