Convertibles calendar

WEEK OF DEC. 5

XL CAPITAL LTD. (Symbol: XL): $650 million mandatory convertibles; Dec. 7, after the markets close; joint bookrunners Goldman Sachs and Citigroup; $25 equity units; talked at 7% to 7.50% for the dividend, up 20% to 24%; greenshoe of $97.5 million; concurrently with $2.15 billion in ordinary shares; proceeds for general corporate purposes, including replenishment of subsidiary capital bases following third-quarter catastrophe losses; Bermuda-based insurance and reinsurance company.

WEEK OF DEC. 12

CERADYNE INC. (Symbol: CRDN): $100 million of 30-year convertibles; Dec. 13, after the close; talked to yield 2.875% to 3.375%, up 30% to 35%; non-callable for five years, with puts in years seven, 10, 15, 20 and 25; greenshoe of $10 million; concurrent offering of 1.8 million shares; bookrunner Citigroup Corporate and Investment Banking; Wachovia Securities, Needham & Co., LLC co-lead managers; portion of proceeds to repay in full its credit facility of $110.9 million; Costa Mesa, Calif.-based maker of technical ceramic products for defense, industrial, automotive and commercial applications.

ON THE HORIZON

ENTERGY CORP. (Symbol: ETR): to price up to $500 million of mandatory convertible equity units; $50 equity units; due Feb. 17, 2009; New Orleans-based electric utility.

NRG ENERGY INC. (Symbol: NRG): Mandatory convertible preferreds expected to total $500 million, with concurrent offerings of $1 billion equity and $2.5 billion debt, to finance roughly $4 billion of its $5.8 billion acquisition of Texas Genco LLC; Texas Genco owners may also receive as much as $400 million preferred stock; Princeton, N.J.-based NRG has operations in the southeastern, western and northeastern states, while Texas Genco has operations in eastern Texas; the transaction is expected to close first-quarter 2006.

DRS TECHNOLOGIES INC. (Symbol: DRS): $250 million senior subordinated convertible notes; as part of a mix of borrowings to help fund its acquisition of Engineered Support Systems Inc. (ESSI); the other financings include $124.7 million under a new revolving credit facility, $200 million from an expanded existing term loan and $700 million of new high-yield debt; DRS is a Parsippany, N.J.-based provider of technology products and services to defense, government intelligence and commercial customers. ESSI is a St. Louis-based diversified supplier of integrated military electronics, support equipment and technical services.

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