By Kenneth Lim
Boston, April 5 - General Mills Inc. priced an overnight $1 billion offering of 30-year convertible senior notes cheaper than talk on Thursday, to yield one-month Libor minus 7 basis points with an initial conversion premium of 69.6% and a reoffered price of 99.72.
The notes were reoffered at variable prices, but most of them were sold around 99.72, market sources said. The notes were talked at the same coupon and conversion premium with a reoffered price of 99.75.
There is an over-allotment option for a further $150 million.
Morgan Stanley was 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.
| Issuer: | General Mills Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Morgan Stanley
|
| Amount: | $1 billion
|
| Greenshoe: | $150 million
|
| Maturity: | April 11, 2037
|
| Coupon: | One-month Libor minus 7 bps
|
| Price: | Par, reoffered at 99.72
|
| Yield: | One-month Libor minus 7 bps
|
| Conversion premium: | 69.6%
|
| Conversion price: | $100
|
| Conversion ratio: | 10
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before April 11, 2008
|
| Puts: | April 11, 2008; April 11, 2009; April 11, 2012; April 11, 2017; April 11, 2022; April 11, 2027; April 11, 2032
|
| Price talk: | One-month Libor minus 7 bps, up 69.6%, reoffered at 99.75
|
| Pricing date: | April 5, before the open
|
| Settlement date: | April 11
|
| Distribution: | Rule 144A
|
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