New York, Jan. 15 - GrafTech International Ltd. priced an upsized $180 million of convertible senior debentures to yield 1.625% with a 24% initial conversion premium after the close Thursday.
The deal was increased from a planned size of $125 million and came with a yield lower than talk of 1.75% to 2.25% and an initial conversion premium towards the rich end of talk of 20% to 25%.
Bookrunner for the Rule 144A issue was JP Morgan.
There is a provisional call for the first seven years subject to a 125% hurdle and a hard call after that.
The debentures are putable in years seven, 10 and 15.
The Wilmington, Del.-based graphite and carbon producer will use proceeds to repay $21 million of term loans outstanding under its senior secured credit facilities, to pay about $49 million toward the antitrust fine assessed by the European Union in July 2001 and for general corporate purposes, including strategic acquisitions that are complementary to its businesses and about $46 million to reduce accounts receivable factoring.
| Issuer: | GrafTech International Ltd.
|
| Issue: | Convertible senior debentures
|
| Bookrunner: | JPMorgan
|
| Amount: | $180 million (increased from $125 million)
|
| Greenshoe: | $45 million
|
| Maturity: | 2024
|
| Coupon: | 1.625%
|
| Price: | Par
|
| Yield: | 1.625%
|
| Conversion premium: | 24%
|
| Conversion price: | $16.58
|
| Conversion ratio: | 60.3136
|
| Contingent conversion: | 125%
|
| Call: | Seven years onwards at par
|
| Soft call: | Up to seven years subject to 125% hurdle
|
| Put: | In years 7, 10, 15
|
| Price talk: | 1.75% to 2.25%, up 20% to 25%
|
| Pricing date: | Jan. 15
|
| Settlement: | Jan. 22
|
| Distribution: | Rule 144A
|
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