General Mills talks overnight $1 billion 30-year convertibles to yield L-7 bps, up 69.6%, reoffered at 99.75

By Kenneth Lim

Boston, April 4 - General Mills Inc. plans to price an overnight $1 billion offering of 30-year convertible senior notes on Thursday before the market opens, with talk putting the yield at one-month Libor minus 7 basis points, an initial conversion premium of 69.6% and a reoffered price of 99.75.

There is an over-allotment option for a further $150 million.

Morgan Stanley is the bookrunner of the Rule 144A offering.

The convertibles are non-callable for the first year and may be put in years one, two, five, 10, 15, 20 and 25.

The convertibles have dividend and takeover protection.

There is net-share settlement.

General Mills, a Minneapolis-based producer of packaged consumer foods, said the proceeds of the deal will be used to partially repay its outstanding U.S. commercial paper.

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