New Issue: Electro Scientific $125 million convertibles at 4.25% yield, up 28.5%

By Ronda Fears

Nashville, Tenn., Dec. 19 - Electro Scientific Industries Inc. sold $125 million of five-year convertible subordinated notes at par to yield 4.25% with a 28.55% initial conversion premium. The Rule 144A deal, via lead manager Merrill Lynch & Co., sold at the cheap end of price talk that put the yield at 3.75% to 4.25% and initial conversion premium between 27.5% and 32.5%.

Portland, Oregon-based Electro Scientific, which provides equipment to electronics manufacturers, plans to use proceeds for general corporate purposes, including possible future acquisitions.

Terms of the new deal are:

Issuer: Electro Scientific Industries Inc.

Amount: $125 million

Greenshoe: $25 million

Lead Manager: Merrill Lynch

Maturity Date: Dec. 21, 2006

Coupon: 4.25%

Issue Price: par

Yield: 4.25%

Conversion Premium: 28.5%

Conversion Price: $37.997

Conversion Ratio: 26.3176

Call: non-callable for three years, then at par

Settlement Date: Dec. 21

End

© 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.