By Kenneth Lim
Boston, May 3 - Epicor Software Corp. priced $200 million of 20-year convertible senior unsecured notes within talk Wednesday to yield 2.375% with an initial conversion premium of 30%.
The convertibles were offered at par. The deal was talked at a coupon of 1.875% to 2.375% and an initial conversion premium of 27.5% to 32.5%.
There is an over-allotment option for a further $30 million.
UBS Investment Bank and Lehman Brothers were the bookrunners of the registered offering.
The convertibles are non-callable for the first seven years. They may be put in years seven, 10 and 15.
There is a contingent conversion trigger at 130% of the conversion price.
The convertibles have dividend and takeover protection.
Epicor, an Irvine, Calif.-based developer of enterprise application software solutions, said the proceeds of the deal will be used to repay its outstanding term loan and to fund general corporate purposes.
| Issuer: | Epicor Software Corp.
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunners: | UBS Investment Bank and Lehman Brothers
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | May 15, 2027
|
| Coupon: | 2.375%
|
| Price: | Par
|
| Yield: | 2.375%
|
| Conversion premium: | 30%
|
| Conversion price: | $18.10
|
| Conversion ratio: | 55.2608
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before May 15, 2014
|
| Puts: | May 15, 2014; May 15, 2017; May 15, 2022
|
| Price talk: | 1.875%-2.375%, up 27.5%-32.5%
|
| Pricing date: | May 2, after the close
|
| Settlement date: | May 8
|
| Distribution: | Registered
|
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