By Ronda Fears
Nashville, Tenn., April 2 - GenCorp Inc. sold an upsized $125 million of five-year convertible subordinated notes at par to yield 5.75% with a 27% initial conversion premium, via sole lead manager Deutsche Bank Securities, Inc. The Rule 144A deal, which was upped from $100 million, sold at the rich end of yield talk and more aggressively than premium guidance of 21% to 25%. The pricing was advanced to overnight from after the close Thursday due to strong demand.
The Sacramento, Calif.-based aerospace and defense company, which also has automotive, chemicals and real estate interests, intends to use proceeds to repay debt under its senior credit facilities, to finance working capital requirements and for general corporate purposes.
Terms of the new deal are:
Issuer: GenCorp Inc.
Amount: $125 million, up from $100 million
Greenshoe: $25 million
Lead Manager: Deutsche Bank Securities
Maturity Date: April 2007
Coupon: 5.75%
Issue Price: par
Yield: 5.75%
Conversion Premium: 27%
Conversion Price: $18.42
Conversion Ratio: 54.28
Call: non-callable for three years, then with 125% trigger
Ratings: Fitch: B+
| Moody's: B1
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| S&P: B+ |
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| Settlement Date: | April 5
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