New Issue: EDS $752 mln (proceeds) convertibles yield 1.25%, up 35%

Nashville, Tenn., Oct. 4 - Electronic Data Systems Corp. sold $752 million (proceeds) of zero-coupon 20-year senior convertible notes at a yield of 1.25% and an initial conversion premium of 35%, according to a source familiar with the deal.

The offering came at the aggressive end of talk on both yield and conversion premium and was upsized from a planned $500 million proceeds. Talk had put the yield at 1.25% to 1.75% and the conversion premium at 30% to 35%.

Joint lead managers for the sale were Credit Suisse First Boston and Salomon Smith Barney.

Plano, Texas-based EDS said it will use proceeds to complete financing of recently announced acquisitions.

Issuer: Electronic Data Systems Corp.

Amount: $752 million (proceeds)

Maturity: Oct. 10, 2021

Coupon: 0%

Price: 77.9

Yield: 1.25%

Initial conversion premium: 35% (based on $59.34 close Wednesday)

Conversion price: $80.11

Conversion ratio: 9.7294

Contingent conversion: At 120% declining to 110%

Call: Noncallable for three years

Put: In years 2, 3, 4, 5, 10 and 15

Settlement: Oct. 10 flat

Ratings: Moody's: A1 (expected)

S&P: A+ (expected)

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