By Abigail W. Adams
Portland, Me., May 26 – John Bean Technologies Corp. priced $350 million of five-year convertible notes after the market close on Tuesday at the midpoint of talk with a coupon of 0.25% and an initial conversion premium of 32.5%, according to a company news release.
Price talk was for a coupon of 0% to 0.5% and an initial conversion premium of 30% to 35%, according to a market source.
Morgan Stanley & Co. LLC was lead left bookrunner for the Rule 144A offering, which carries a greenshoe of $52.5 million.
The notes are non-callable until May 20, 2024 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash up to their principal amount with the remainder to be settled in cash, shares or a combination of both.
In connection with the offering, the company entered into convertible note hedge and warrant transactions.
The strike price on the warrant transactions is $240.02, which represents a premium of 87.5% over the closing price of stock on May 26.
Proceeds will be used to cover the cost of the convertible note hedge transactions and for general corporate purposes, which may include acquisitions and other strategic investments.
John Bean Technologies is a Chicago-based food processing and airport equipment company.
| Issuer: | John Bean Technologies Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $350 million
|
| Greenshoe: | $52.5 million
|
| Maturity: | May 15, 2026
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 0.25%
|
| Price: | Par
|
| Yield: | 0.25%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $169.61
|
| Conversion rate: | 5.8958
|
| Call options: | Non-callable until May 20, 2024 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | May 25
|
| Settlement date: | May 28
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 0% to 0.5% and initial conversion premium of 30% to 35%
|
| Stock symbol: | NYSE: JBT
|
| Stock price: | $128.01 at market close May 26
|
| Market capitalization: | $4.06 billion
|
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