By Rebecca Melvin
Princeton, N.J., Oct. 21 - EnPro Industries Inc. priced at par $172.5 million of 10-year convertibles to yield 3.9375% with an initial conversion premium of 30%. The total size included immediate exercise of the $22.5 million greenshoe in addition to the planned $150 million amount, according to a company release.
Bookrunner for the Rule 144A deal was Banc of America Securities LLC.
The deal has dividend and takeover protection, and there is contingent conversion if the closing price of EnPro common stock is more than 130% of the current conversion price for 20 trading days of a 30 consecutive trading-day period.
Proceeds will be used, together with available cash, to fund the redemption of its $145 million in outstanding Tides securities, and for general corporate purposes.
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.
EnPro is a diversified company that makes sealing products, metal polymer bearings, compressor systems and other engineered products. It is based in Charlotte, N.C.
| Issuer: | EnPro Industries Inc.
|
| Issue: | Convertible senior debentures
|
| Bookrunner: | Banc of America Securities LLC
|
| Amount: | $172.5 million (includes exercised greenshoe)
|
| Greenshoe: | $22.5 million
|
| Maturity: | Oct. 15, 2015
|
| Coupon: | 3.9375%
|
| Price: | Par
|
| Yield: | 3.9375%
|
| Conversion premium: | 30%
|
| Conversion price: | $33.79
|
| Conversion ratio: | 29.5972
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Contingent conversion: | Yes, with a 130% trigger
|
| Pricing date: | Oct. 20, after the close
|
| Settlement date: | Oct. 26
|
| Distribution: | Rule 144A
|
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