EDO $175 million 20-year convertibles talked to yield 3.5%-4%, up 28%-32%

By Rebecca Melvin

Princeton, N.J., Nov. 14 - EDO Corp. launched a $175 million offering of 20-year convertibles, which were expected to price Tuesday after the close, according to a syndicate source.

The convertible senior subordinated notes were talked to yield 3.5% to 4% with an initial conversion premium of 28% to 32%, the source said.

Citigroup Global Markets Inc. is bookrunner, and Wachovia Capital Markets LLC is joint lead manager.

EDO is also calling for the redemption of all $137.8 million of its 5.25% convertible subordinated notes due 2007 at the call price of 102.1% of the principal amount, plus accrued interest, the company said in a news release.

Proceeds from the new notes will be used to pay for the redemption, with remaining proceeds earmarked for general corporate purposes.

There is an over-allotment option as part of the offering for $26.25 million.

The offering is being made under a previously filed shelf registration.

New York City-based EDO is a defense contractor that provides products and services in areas including electronics, communications and aircraft armament systems.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.