By Ronda Fears
Nashville, Oct. 8 - Eastman Kodak Co. sold $500 million of 30-year convertible notes at par to yield 3.375% with a 47% initial conversion premium, via joint bookrunners Citigroup and Lehman Brothers.
The issue sold at the aggressive end of yield talk for 3.375% to 3.875% and aggressively outside premium guidance for 40% to 45%.
Concurrently Kodak sold $500 million of registered 7.25% senior unsecured notes maturing in 2013.
Kodak said proceeds from both offerings would be used to repay a portion of its commercial paper borrowings and partially fund its previously announced acquisition of PracticeWorks Inc.
Terms of the new deal are:
Issuer: Eastman Kodak Co.
| Issue: | Convertible senior unsecured notes
|
| Lead managers: | | Citigroup and Lehman Brothers
|
| Amount | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | October 2033
|
| Coupon: | 3.375%
|
| Price: | Par
|
| Yield: | 3.375%
|
| Conversion premium: | 47%
|
| Conversion price: | $31.02
|
| Conversion ratio: | 32.2373
|
| Call: | Non-callable for 7 years
|
| Put: | In years 7, 10, 15, 20 and 25
|
| Contingent conversion: | 120%
|
| Price talk: | 3.375-3.875%, up 40-45%
|
| Pricing date: | Oct. 7, after the close
|
| Settlement: | Oct. 10
|
| Distribution: | Rule 144A
|
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