EnPro prices $172.5 million convertibles to yield 3.9375%, up 30%

New York, Oct. 20 - EnPro Industries, Inc. priced $172.5 million of convertible senior debentures to yield 3.9375% with a 30% initial conversion premium.

In addition to the originally planned amount of $150 million, the $22.5 million over-allotment option was immediately exercised by the underwriters.

The deal priced with a yield well outside talk of 2.875% to 3.375% and with a conversion premium in the middle of talk of 27.5% to 32.5%.

The conversion price is $33.79 and the rate 29.5972.

Banc of America Securities LLC was bookrunner for the Rule 144A deal.

EnPro said it will use part of the proceeds to enter into convertible debenture hedge and warrant transactions which will effectively raise the conversion price to $46.78, an 80% premium.

The company will use remaining net proceeds, together with available cash, to fund the redemption of its $145 million in outstanding Tides securities, and for general corporate purposes.

EnPro is a Charlotte, N.C., diversified company.

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