Nashville, Sept. 25 - Exult Inc. sold $100 million of seven-year convertible notes at par to yield 2.5% with a 40% initial conversion premium, via sole bookrunner Goldman Sachs & Co.
The Rule 144A deal sold at the aggressive end of price talk of 2.5% to 3.0%, up 35% to 40%.
Holders will have full dividend protection.
The Irvine, Calif.-based business services company plans to use proceeds for working capital and general corporate purposes, including funding contract costs, continued development and expansion of its infrastructure and service capacity and acquisitions.
Terms of the new deal are:
Issuer: Exult Ltd.
| Issue: | Convertible senior unsecured notes
|
| Lead manager: | | Goldman Sachs
|
| Amount | $100 million
|
| Greenshoe: | $10 million
|
| Maturity: | Oct. 1, 2010
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 40%
|
| Conversion price: | $11.76
|
| Conversion ratio: | 85.034
|
| Call: | Non-callable for 5 years
|
| Put: | In year 5
|
| Contingent conversion: | 110%
|
| Price talk: | 2.5-3.0%, up 35-40%
|
| Pricing date: | Sept. 24, after the close
|
| Settlement: | Sept. 30
|
| Distribution: | Rule 144A
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