Exult $100 million convertible talked at 2.5-3.0%, up 35-40%

Nashville, Sept. 24 - Exult Inc. launched $100 million of seven-year convertible notes in a one-day marketing effort Wednesday, with guidance for a yield of 2.5% to 3.0% and 35% to 40% initial conversion premium.

Goldman Sachs & Co. is sole bookrunner of the Rule 144A deal, which was pricing after the close Wednesday.

The senior unsecured notes will be non-callable for five years, with a put in year five. There also will be a 110% contingent conversion trigger. Holders will have full dividend protection.

There is a $10 million greenshoe available.

The Irvine, Calif.-based business services company plans to use proceeds for working capital and general corporate purposes, including to fund contract costs, continued development and expansion of its infrastructure and service capacity and acquisitions.

At Dec. 31, the company reported it has six human resources outsourcing clients - Bank of America Corp., BP plc, International Paper Co., Pactiv Corp., Prudential Financial and Unisys Corp. In addition, the company said it has many process consulting clients, including Alcan, Unilever, Gillette and Marriott.

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