New Issue: 3M overnight $500 million proceeds convertible yields 0.5%, up 40%

By Ronda Fears

Nashville, Nov. 15 - 3M Co. sold $500 million in proceeds of 30-year convertible senior notes at 86.087 for a yield to maturity of 0.5% with a 40% initial conversion premium.

Merrill Lynch & Co. was lead manager of the overnight Rule 144A deal, which priced at the middle of yield talk of 0.25% to 0.75% and the rich end of premium guidance of 36% to 40%.

3M said proceeds would be used for general corporate purposes. Earlier this week, the manufacturing giant agreed to buy Corning Inc.'s television lens business for about $850 million.

Terms of the new deal are:

Issuer:	3M Co.
Amount:	$500 million (proceeds)
Greenshoe:	$50 million (proceeds)
Lead manager:	Merrill Lynch & Co.
Maturity date:	Nov. 21, 2032
Coupon:	0%
Issue price:	86.087
Yield:		0.5%
Conversion premium:	40%
Conversion price:	$182
Conversion ratio:	4.73
Call:	Non-callable for five years
Put:	In years three, five, 10, 15, 20 and 25
Contingent conversion:	130%
Contingent payment:	130%
Expected ratings:	Moody's: Aa1
	S&P: AA
Settlement date:	Nov. 21

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