Published on 11/18/2004 in the Prospect News Convertibles Daily.
New Issue: GenCorp sells upsized $80 million convertible at 2.25%, up 22.5%
Nashville, Nov. 18 - GenCorp Inc. sold an upsized $80 million of 20-year convertible subordinated debentures at par to yield 2.25% with a 22.5% initial conversion premium via bookrunner Wachovia Securities.
The Rule 144A deal, upped from $50 million, priced at the aggressive end of yield talk for a 2.25% to 2.75% coupon and in the middle of premium guidance for 20% to 25%.
Rancho Cordova, Calif.-based GenCorp, which makes aircraft components and has real estate and chemical interests, said it plans to use proceeds to repurchase part of its 5.75% convertible subordinated notes and to repay or repurchase other debt.
| Issuer: | GenCorp Inc.
|
| Issue: | Convertible subordinated debentures
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| Bookrunner: | Wachovia Securities
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| Co-managers: | JPMorgan Securities
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| Amount: | $80 million, up from $50 million
|
| Greenshoe: | $80 million, up from $25 million
|
| Maturity: | Nov. 15, 2024
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| Coupon: | 2.25%
|
| Price: | Par
|
| Yield: | 2.25%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $20.00
|
| Conversion ratio: | 50.0000
|
| Contingent conversion: | 130%
|
| Contingent payment: | No
|
| Dividend protection: | Yes
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| Takeover protection: | Yes
|
| Call: | Non-callable for 7 years, then with 140% hurdle through year 10
|
| Put: | In years 7, 10 and 15
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| Expected rating(s): | Moody's: Caa2
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| S&P: BB-
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| Price talk: | 2.25%-2.75%, up 20%-25%
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| Pricing date: | Nov. 17, after market close
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| Settlement date: | Nov. 23
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| Distribution: | Rule 144A
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