By Evan Weinberger
New York, Oct. 4 - Excel Maritime Carriers Ltd. priced an upsized $125 million offering of 1.875% convertible senior notes due Oct. 15, 2027 with an initial conversion premium of 55%.
The deal was increased from the originally announced at $100 million and came in at the rich end of talk, which had been for a coupon of 1.875% to 2.375% and an initial conversion premium of 50% to 55%. The over-allotment option remains $25 million.
The conversion price is $91.30 and the conversion ratio is 10.9529. There is also an incremental share factor of 5.4765 shares per $1,000 principal amount.
Deutsche Bank is the bookrunner of the Rule 144A transaction, which priced after the market close Wednesday.
There is call protection for the first seven years and puts in 2012, 2017 and 2022. There is a contingent conversion through Oct. 14, 2014 subject to a 125% hurdle. There are standard dividend and takeover protections.
The notes have net share settlement.
Excel Maritime Carriers is an Athens, Greece-based seaborne dry bulk transportation. The company plans to use the proceeds for general corporate purposes, including the possible acquisition of new vessels and paying down debt.
Issuer: Excel Maritime Carriers Ltd.
Issue: Convertible senior notes
Amount: $125 million
Greenshoe: $25 million
Maturity: Oct. 15, 2027
Coupon: 1.875%
Price: Par
Yield: 1.875%
Conversion premium: 55%
Conversion price: $91.30
Conversion ratio: 10.9529
Call: Protected for the first seven years
Puts: In 2012, 2017 and 2022
Contingent conversion: Through Oct. 14, 2014, subject to 125% hurdle
| Net share settlement: | Yes
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| Bookrunner: | Deutsche Bank
|
| Distribution: | Rule 144A
|
| Settlement: | Oct. 10
|
| Talk: | 1.875%-2.375% coupon, 50%-55% conversion premium; $100 million principal amount
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