DFC Global offers $200 million five-year convertibles to yield 2.75%-3.25%, up 27.5%-32.5%

By Rebecca Melvin

New York, April 9 - DFC Global Corp. launched a $200 million offering of five-year convertibles in a private deal seen pricing after the market close on Tuesday, according to market sources.

The Rule 144A deal, which has a $30 million greenshoe, was talked to yield 2.75% to 3.25% with an initial conversion premium of 27.5% to 32.5%.

Joint bookrunners are Barclays Capital Inc. and Deutsche Bank Securities Inc. Wells Fargo Securities LLC is a passive bookrunner.

Joint lead managers are Nomura and JMP Securities LLC, and co-managers are C.L. King & Associates, Roth Capital Partners and William Blair & Co.

The bonds are non-callable for life with no puts. The securities have net share settlement and have dividend protection via a conversion rate adjustment, as well as cash takeover protection.

Proceeds will be used to repay amounts outstanding under the company's revolving credit facility and for general corporate purposes, and to fund the cost of a call spread.

Based in Berwyn, Pa., DFC provides financial services to unbanked and underbanked consumers.

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