Convertibles Calendar

WEEK OF JAN. 23

TEVA PHARMACEUTICAL INDUSTRIES LTD. (Nasdaq: 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 high-yield notes and $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; post close Jan. 26; $25 million greenshoe; non-callable for seven years, with put dates 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 debt, fund acquisitions and for general corporate purposes; Wood Dale, Ill.-based provider of products and services to the airline and defense industries.

WEEK OF JAN. 30

DRS TECHNOLOGIES INC. (NYSE: DRS): to price $300 million of senior subordinated convertible notes; price talk for a coupon of 1.75% to 2.25%, up 17.5% to 22.5%; to price Jan. 30 ahead of the market open; greenshoe of $45 million; non-callable for five years, puts in years five, 10 and 15; proceeds earmarked to help fund its acquisition of Engineered Support Systems Inc. (ESSI); Parsippany, N.J.-based defense company.

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