Exide $60 million convertible floater talked to yield Libor minus 100-150 bps, up 18%-22%

By Ronda Fears

Nashville, March 10 - Exide Technologies Inc. launched $60 million of 8.5-year convertible floating-rate notes late Thursday with guidance for a yield of Libor minus 100 to 150 basis points and initial conversion premium of 18% to 22%.

Deutsche Bank Securities is sole bookrunner of the Rule 144A deal, which is scheduled to price after the market close Monday.

The convertible is non-callable for life. The issue carries standard dividend and takeover protection.

There is a $5 million greenshoe available.

Exide said the senior subordinated convertible notes will replace a portion of a $350 million senior note offering, which was announced in early February. Sources told Prospect News on Thursday that the junk bond deal would be cut to $290 million.

Price talk on the Exide junk bond put the yield at 10.25% to 10.5%, market sources told Prospect News.

Moreover, the company said proceeds from the bond offerings would be used to reduce debt, including its senior bank facility, and to provide greater liquidity as well as complete a restructuring effort to improve its cost structure. The bond offerings were contingent upon an amendment to the senior credit agreement, the company had said in February.

Exide emerged from a two-year bankruptcy in May 2004, slashing its debtload more than 70%, or by $1.3 billion, to $540 million with annual interest payments reduced by $70 million. Pre-petition lenders got 90% of the equity of the reorganized company, according to the plan, with unsecured creditors getting the remaining 10% stake along with warrants to buy a 20% stake, subject to dilution.

The company's $600 million exit facility was arranged by Deutsche Bank.

Exide shares on Thursday lost 48 cents, or 3.19%, to close at $14.55.

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