WEEK OF JAN. 23

TEVA PHARMACEUTICAL INDUSTRIES LTD. (Symbol: TEVA): to price $1.25 billion of 20-year convertibles in two tranches; of which $750 million talked to price 1.5% to 2%, up 22.5% to 27.5%, non-call five, with a put in year five; $500 million talked to yield 0.25% to 0.50%, up 14% to 17%, non-call two with a put in year two; pricing Jan. 26 after the close; concurrently $1.5 billion in high-grade debt in two series including 10-year and 30-year senior notes; all proceeds to refinance bridge loans related to IVAX Corp. acquisition, which is expected to close Jan. 26; via bookrunners Lehman, Credit Suisse and Citigroup Global Markets for the straight notes and the $750 million of convertibles; via bookrunners Lehman, Credit Suisse and Bear Stearns for the $500 million of convertibles; Israel-based generic drug maker.

AAR CORP. (NYSE: AIR): to price $100 million of 20-year convertibles; talked to yield 1.75% to 2.25%, up 17.5% to 22.5%; Rule 144A; via bookunner Merrill Lynch; to price after the close Jan. 26; $25 million greenshoe; non-callable for seven years, with puts in years seven, 10 and 15; dividend and takeover protection; contingent conversion at a trigger of 120%; proceeds to repurchase accounts receivable that have been securitized, repay higher interest rate indebtedness, fund acquisitions and for general corporate purposes; Wood Dale, Ill.-based provider of products and services to the airline and defense industries.

UNITED AUTO GROUP INC. (Symbol: UAG): to price $250 million of 20-year convertibles; talked to yield 3% to 3.5%, up 25% to 30%; to price after markets close on Jan. 25; Rule 144A; via sole bookrunner Merrill Lynch with Thomas Weisel as co-manager; greenshoe $50 million; non-callable for five years; puts in years five, 10, and 15; contingent conversion at a trigger of 120%; contingent payment, also at a trigger of 120%; dividend and takeover protection; par value of $1,000; proceeds to repay existing long-term debt under revolving senior credit facility, which may be re-borrowed, and to purchase, simultaneously with the offering, up to 500,000 shares of stock; Bloomfield Hills, Mich.-based automotive retailer.

NRG ENERGY INC. (Symbol: NRG): to price $500 million of mandatory convertible preferreds; talked to yield 5.75% to 6.25%, up 20% to 24%; to price Jan. 25, via joint bookrunners Citigroup Global Markets and Morgan Stanley; 15% greenshoe; concurrent with offerings of $1 billion equity and $2.5 billion debt; to finance roughly $4 billion for its $5.8 billion acquisition of Texas Genco LLC; Princeton, N.J.-based energy company with power plants in the U.S. southeast, west and northeast; Texas Genco has operations in eastern Texas; the transaction is expected to close during the quarter.

ON THE HORIZON

DRS TECHNOLOGIES INC. (Symbol: DRS): to price $300 million of senior subordinated convertible notes; as part of a mix of borrowings to help fund its acquisition of Engineered Support Systems Inc. (ESSI); other financings include $124.7 million under a new revolving credit facility, $200 million from an expanded existing term loan and $700 million of new high-yield debt; Parsippany, N.J.-based defense company; ESSI is a St. Louis-based diversified supplier of integrated military electronics, support equipment and technical services.

© 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.