John Bean greenshoe lifts 0.25% convertibles to $402.5 million

By Wendy Van Sickle

Columbus, Ohio, May 28 – Underwriters for John Bean Technologies Corp.’s 0.25% five-year convertible notes fully exercised their $52.5 million greenshoe, increasing the total deal size to $402.5 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company priced $350 million of the convertibles after the market close on May 25 at the midpoint of talk with a coupon of 0.25% and an initial conversion premium of 32.5%.

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.

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.

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