By Rebecca Melvin
Princeton, N.J., Nov. 16 - EDO Corp. priced $175 million 20-year convertibles at par to yield 4%, with an initial conversion premium of 28%. The bonds were reoffered at 99, according to a syndicate source.
The convertible senior subordinated notes priced at the cheap end of talk, which was for a coupon of 3.5% to 4% with an initial conversion premium of 28% to 32%.
The deal was sold via bookrunner Citigroup Global Markets Inc. and joint lead manager Wachovia Capital Markets LLC.
Net proceeds from the offering will be about $170 million after the underwriter's discounts and expenses, the company said. Proceeds will be used to redeem $137.8 million outstanding principal amount of 5.25% convertible subordinated notes due 2007 at the call price of 102.1% of the principal amount, plus accrued interest.
The company said it has no other outstanding debt and intends to use remaining proceeds for general corporate purposes.
There is an over-allotment option as part of the offering for $26.25 million.
The registered deal is being made pursuant to 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.
| Issuer: | EDO Corp.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | Citigroup Global Markets
|
| Joint lead manager: | Wachovia Capital
|
| Amount: | $175 million
|
| Greenshoe: | $26.25 million
|
| Maturity: | Nov. 15, 2025
|
| Coupon: | 4%
|
| Price: | Par
|
| Reoffered price: | 99
|
| Yield: | 4%
|
| Conversion premium: | 28%
|
| Conversion price: | $34.19
|
| Conversion ratio: | 29.2493
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Calls: | Non-callable for five years
|
| Puts: | In years seven, 10, 15
|
| Pricing date: | Nov. 15
|
| Settlement date: | Nov. 21
|
| Distribution: | Registered
|
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