Albemarle talks $1.75 billion three-year mandatory convertibles at 7%-7.5%, up 17.5%-22.5%

By Abigail W. Adams

Portland, Me., March 4 – Albemarle Corp. plans to price $1.75 billion, or 35 million, three-year $50-par depositary shares representing a 1/20th interest in a share of $1,000-par series A mandatory convertible preferred stock after the market close on Tuesday with price talk for a dividend of 7% to 7.5% and an initial conversion premium of 17.5% to 22.5%, according to a market source.

J.P. Morgan Securities LLC and BofA Securities Inc. are bookrunners for the Securities and Exchange Commission-registered offering, which carries a greenshoe of $262.5 million.

The depositary shares are non-callable and will be listed on the New York Stock Exchange under the symbol “ALBPrA.”

The notes are putable upon a fundamental change.

There is dividend protection above 40 cents a quarter.

Proceeds will be used for general corporate purposes.

Albemarle is a Charlotte, N.C.-based chemical manufacturing company.

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