Millennium $125 million convertible talked at 4.25-4.75%, up 35-40%

By Ronda Fears

Nashville, Nov. 18 - Millennium Chemicals Inc. launched $125 million of 20-year convertible notes talked to yield 4.25% to 4.75% with a 35% to 40% initial conversion premium via joint bookrunners JPMorgan Securities and Banc of America Securities.

The Rule 144A deal is scheduled to price after the close Wednesday.

The senior notes will be non-callable for seven years. In addition, there are puts in years seven, 10 and 15.

Also, there is a contingent conversion trigger of 125%.

There is a $25 million greenshoe available.

The Hunt Valley, Md.-based chemical company said proceeds would be used to repay the remaining balance of its term loan facility and to reduce borrowings under its revolving credit facility.

Millennium shares closed Tuesday up 44 cents, or 4.52%, to $10.18.

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