By Rebecca Melvin
New York, Sept. 17 - Green Plains Renewable Energy Inc. priced an upsized $100 million of five-year convertible senior notes overnight at par to yield 3.25% with an initial conversion premium of 22.5%, according to a news release Tuesday.
The Rule 144A deal was upsized from an initially talked $75 million. Pricing came at the midpoint of talk, which was for a 3% to 3.5% coupon and 20% to 25% premium.
There is a $20 million greenshoe, which was upsized from $15 million.
Jefferies & Co. was the bookrunner.
The notes are not convertible before April 1, 2018 unless shares rise to 130% of the conversion price for 20 out of 30 consecutive trading days. There is net share settlement.
The notes are non-callable until Oct. 1, 2016 and then are provisionally callable if shares rise to 140% of the conversion price. There is takeover and dividend protection.
Proceeds will be used for general corporate purposes. The company may use a portion of the proceeds to acquire or invest in additional facilities, assets or technologies. In addition, the company may use a portion of the proceeds to repurchase some of its outstanding 5.75% convertibles through open-market repurchases.
Green Plains is an Omaha-based ethanol company.
| Issuer: | Green Plains Renewable Energy Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $100 million, upsized from $75 million
|
| Greenshoe: | $20 million, upsized from $15 million
|
| Maturity: | Oct. 1, 2018
|
| Bookrunner: | Jefferies & Co.
|
| Co-managers: | Macquarie and Stephens Inc.
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $20.85
|
| Conversion ratio: | 47.9627
|
| Contingent conversion: | Yes until April 1, 2018 at a 130% price hurdle
|
| Net share settlement: | Yes
|
| Calls: | Non-callable until Oct. 1, 2016, then provisionally callable at 140% price hurdle
|
| Puts: | No puts
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Price talk: | 3%-3.5%, up 20%-25%
|
| Pricing date: | Sept. 17
|
| Settlement date: | Sept. 20
|
| Stock reference price: | $17.02 at close Sept. 16
|
| Distribution: | Rule 144A
|
| Market capitalization: | $481.75 million
|
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