By Evan Weinberger
New York, June 27 - Gannett Co. Inc. priced $1 billion of senior unsecured convertible notes due 2037 to yield one-month Libor minus 23 bps with an initial conversion premium of 70%.
The convertibles were priced at par and reoffered at 99.65.
Citigroup is the bookrunner for the deal, which priced before the open on Wednesday.
The coupon and conversion price were set Tuesday night. There was no talk for the reoffer price.
The initial conversion rate is 10.8530 and the conversion price is $92.14.
The convertible will be callable at any point after July 15, 2008 at par plus any accrued interest. There is a put option on July 15 on each of 2008, 2009, 2012, 2017, 2022, 2027 and 2032, or in the event of certain change in control events.
The convertibles have a net share settlement option.
Dividend and takeover protection is included.
Gannett says the proceeds will go to repayment of the company's outstanding U.S. commercial paper.
Gannett is a news media company based in MacLean, Va. It publishes 85 daily newspapers in the United States. The company also owns papers in the United Kingdom, 23 television stations in the United States and several internet properties.
| Issuer: | Gannett Co. Inc.
|
| Issue: | Floating-rate convertible senior notes
|
| Amount: | $1 billion
|
| Maturity: | July 15, 2037
|
| Coupon: | One-month Libor minus 23 bps (initially 5.09%)
|
| Price: | 100
|
| Reoffer price: | 99.65
|
| Conversion premium: | 70%
|
| Conversion price: | $92.14
|
| Conversion ratio: | 10.8530
|
| Call: | July 15, 2008 onwards at par
|
| Put: | July 15 in each of 2008, 2009, 2012, 2017, 2022, 2027, 2032 at par
|
| Pricing date: | June 27, before open
|
| Settlement: | June 29
|
| Bookrunner: | Citigroup
|
| Distribution: | Off shelf
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
