By Rebecca Melvin
Princeton, N.J., Sept.7 - Dobson Communications Corp. priced Wednesday $150 million of 20-year convertible bonds to yield 1.5%, with an initial conversion premium of 27.5%.
The convertible debentures were priced concurrently with $150 million senior floating-rate notes due 2012, which came at Libor plus 425 basis points.
The Rule 144A convertible deal, sold via bookrunners Lehman Brothers, Bear Stearns & Co. and Morgan Stanley, priced at the cheap end of the coupon range seen at 1.0% to 1.5% and at the expensive end for the initial conversion premium range, seen at 22.5% to 27.5%.
The bonds have a $30 million, or 20%, greenshoe.
Oklahoma City-based Dobson Communications is a provider of wireless communications services for rural and suburban areas.
The company intends to use proceeds, along with cash on hand, to redeem $299 million outstanding aggregate principal amount of its 10.875% senior notes due 2010, plus accrued interest and the redemption premium.
| Issuer: | Dobson Communications Corp.
|
| Issue: | Senior convertible debentures
|
| Amount: | $150 million
|
| Greenshoe: | $30 million
|
| Maturity: | 2025
|
| Coupon: | 1.5% |
|
| Price: | Par |
|
| Yield: | 1.5%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $10.30
|
| Conversion ratio: | 97.0685
|
| Contingent conversion: | 125%
|
| Call: | Oct. 1, 2010 onwards at par
|
| Put: | In years 5, 10 and 15
|
| Bookrunners: | Lehman Brothers, Bear Sterns and Morgan Stanley
|
| Pricing date: | Sept. 7
|
| Settlement date: | Sept. 13
|
| Distribution: | Rule 144A
|
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