Convertibles Calendar

WEEK OF DEC. 11

CADENCE DESIGN SYSTEMS INC. (Nasdaq: CDNS): $500 million dual-tranche offering of five- and seven-year convertible senior notes; $250 million five-year tranche, $250 million seven-year tranche; JP Morgan, Merrill Lynch, Morgan Stanley (joint books); Rule 144A; non-callable, no puts; contingent conversion at 130%; San Jose, Calif., electronic design technology company plans to use up to $200 million of the proceeds to buy back part of its zero-coupon, zero-yield convertible senior notes due 2023; it will also use the proceeds to concurrently buy back its common stock and fund convertible note hedge and warrant transactions; five-year tranche talked at a coupon of 1.375% to 1.875% and an initial conversion premium of 15% to 20%, seven-year tranche talked at a coupon of 1.5% to 2% and an initial conversion premium of 15% to 20%; pricing Wednesday after the close.

INTERNATIONAL GAME TECHNOLOGY INC. (NYSE: IGT): $825 million 30-year convertible senior debentures; Merrill Lynch, Banc of America Securities, Goldman Sachs, Wachovia, UBS Investment Bank, Deutsche Bank, Bear Stearns (joint books); Rule 144A; $75 million greenshoe; non-callable for three years; puts in years three, five, 10, 15, 20 and 25; contingent conversion at 130%; contingent payment at 120%; Reno, Nev., maker of gaming machines and systems will use $612 million of the proceeds and cash on hand to redeem its outstanding zero-coupon convertible debentures; it will also use about $225 million of the proceeds and cash on hand to concurrently buy back its common stock; pricing Thursday after the close; talked at a coupon of 2.1% to 2.6% and an initial conversion premium of 35% to 40%.

PEABODY ENERGY CORP. (NYSE: BTU): $500 million 60-year convertible junior subordinated debentures; Morgan Stanley, Lehman Brothers, Citigroup (joint books); off shelf; $75 million greenshoe; scheduled maturity of 35 years, at which time Peabody must redeem the debentures with similar equity-credit securities, failure to do so will be a breach of covenant but not an event of default; Peabody may defer coupon payments for up to 10 years, after five years of deferral or if a mandatory trigger event occurs, Peabody must fund coupons by selling warrants or preferred stock; non-callable for five years; soft-call hurdle at 130% through year 25; no puts; may be converted before Dec. 15, 2036 subject to 140% contingent conversion; St. Louis-based coal company will use proceeds to repay outstanding revolving and term debt, which was used to help pay for its recent acquisition of Excel Coal Ltd.; pricing Thursday after the close; talked at a coupon of 4.5% to 5% and an initial conversion premium of 40% to 45%.

ON THE HORIZON

EUROSEAS LTD. (OTCBB: EUSEF): Unspecified amount of two-year mandatory convertible preferred stock; Cantor Fitzgerald & Co., Oppenheimer & Co. (joint books); registered; non-callable; Maroussi, Greece-based owner and operator of drybulk and container vessels will use proceeds to pay back $7 million of debt incurred through acquisition of the vessel YM Xingang I and to acquire additional vessels.

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