By Ronda Fears
Nashville, June 25 - Electronic Data Systems Corp. sold $600 million of 20-year convertibles at par to yield 3.875% with a 51% initial conversion premium via joint lead managers Citigroup and Banc of America Securities.
The issue sold at the wide end of yield talk for 3.375% to 3.875% but aggressively outside premium guidance for 41% to 46%.
Holders will have dividend protection by way of a conversion ratio adjustment.
Also Wednesday, EDS sold $1.1 billion of 10-year straight senior notes, upsized from $500 million, with a 6% coupon, subject to adjustment based on changes in the ratings assigned to the notes.
The IT services firm said proceeds would be used for general corporate purposes.
Terms of the deal are:
Issuer: Electronic Data Systems Corp.
| Issue: | Convertible senior notes
|
| Lead managers: | | Citigroup and Banc of America Secutiries
|
| Amount | $600 million
|
| Greenshoe: | $90 million
|
| Maturity: | July 1, 2023
|
| Dividend: | 3.875%
|
| Price: | Par
|
| Yield: | 3.875%
|
| Conversion premium: | 51%
|
| Conversion price: | $34.14
|
| Conversion ratio: | 29.2912
|
| Call: | Non-callable for 7 years
|
| Put: | In years 5, 10 and 15, in cash only
|
| Contingent conversion: | 120%
|
| Contingent payment: | 120% to year 7, then 110%
|
| Ratings: | Moody's: Baa3
|
| S&P: BBB
|
| Price talk: | 3.375-3.875%, up 41-46%
|
| Pricing date: | June 25, after the close
|
| Settlement: | June 30
|
| Distribution: | Rule 144A
|
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