By Rebecca Melvin
New York, June 5 - Exterran Holdings Inc. priced an upsized $325 million of five-year convertible notes after the close Thursday at par to yield a coupon of 4.25% and a 24% initial conversion premium.
The offering was upsized from an originally expected $250 million size, and pricing came at the midpoint of talk for the coupon of 4% to 4.5% and toward the cheap end of talk for the premium, which was 22.5% to 27.5%.
The greenshoe was upsized to $48.75 million from $37.5 million.
J.P. Morgan Securities Inc., Merrill Lynch & Co., Wachovia Securities LLC and Credit Suisse were joint bookrunners for the registered, off-the-shelf offering.
The notes are non-callable with no puts, except a fundamental change put. And there is contingent conversion at a trigger price of about $30.10, which is 130% of the initial conversion price.
Exterran also entered into convertible note hedge and warrant transactions with one or more of the underwriters and their affiliates. The effect of the warrant transactions was to raise the initial conversion premium to 75% from the company's perspective.
A portion of the proceeds will be used to pay hedge transaction costs, and the remainder will be used to pay down borrowings under the company's revolving credit facility and its asset-backed securitization facility.
Exterran is a Houston-based oil and gas production company.
| Issuer: | Exterran Holdings Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $325 million, upsized from $250 million
|
| Greenshoe: | $48.75 million, upsized from $37.5 million
|
| Maturity: | June 15, 2014
|
| Bookrunners: | J.P. Morgan Securities Inc., Merrill Lynch & Co., Wachovia Securities LLC and Credit Suisse
|
| Coupon: | 4.25%
|
| Price: | Par
|
| Yield: | 4.25%
|
| Conversion premium: | 24%
|
| Conversion price: | $23.15
|
| Conversion ratio: | 43.1951
|
| Price talk: | 4%-4.5%, up 22.5%-27.5%
|
| Net share settlement: | Yes
|
| Calls: | Non-callable
|
| Puts: | Fundamental change
|
| Contingent conversion: | Yes, at a 130% price trigger
|
| Pricing date: | June 4
|
| Settlement date: | June 10
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | NYSE: EXH
|
| Stock reference: | $18.67
|
| Market capitalization: | $1.16 billion
|
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