Elitegroup $100 million (proceeds) convertibles talked at 4.12-5.03% yield, up 11-16%

By Ronda Fears

Nashville, Tenn., March 11 - Elitegroup Computer Systems Co. Ltd. is selling $100 million of five-year 0% convertible unsubordinated notes at par to yield 4.12% to 5.03% with an 11% to 16% initial conversion premium. UBS Warburg is sole lead manager of the deal, which is pricing Tuesday to institutional buyers outside the U.S.

The notes will be non-callable for three years, then with a 130% hurdle. There are puts on Feb. 19, 2004, at 108.5 and on March 19, 2004 at 110. There is a reset option at years two, three and four with a reset conversion price of no less than 80% of the initial conversion price. The reset option in year two will be 45 days prior to the put.

There is a $20 million greenshoe.

The issue will be convertible into local shares of Elitegroup via entitlement certificates.

© 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.