By Stephanie N. Rotondo
Seattle, Feb. 1 – The Greenbrier Cos. Inc. sold an upsized $250 million of seven-year convertible senior notes at par to yield 2.875% with an initial conversion premium of 37.5% on Wednesday, the company said in a press release.
The deal was upsized from $175 million. The yield priced richer than the 3.25% to 3.75% talk. The conversion premium also came richer than the 30% to 35% talk.
Goldman Sachs & Co. and BofA Merrill Lynch are the joint bookrunners.
The Rule 144A deal includes a $25 million over-allotment option, downsized from $26.25 million.
Conversions will be settled with common stock, cash, or a combination. The conversion rate is 16.6234 shares per each $1,000 of notes, equal to a conversion price of $60.16 per share.
The notes are contingently convertible prior to Nov. 1, 2023 but can be converted any time after that date ahead of maturity.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures, acquisitions of or investments in complementary businesses and products, or repayment or repurchase of debt.
Greenbrier is a Lake Oswego, Ore.-based supplier of equipment and services to the freight rail transportation markets.
| Issuer: | The Greenbrier Cos. Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $250 million
|
| Greenshoe: | $25 million
|
| Maturity: | Feb. 1, 2024
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch
|
| Coupon: | 2.875%
|
| Price: | Par of $1,000
|
| Yield: | 2.875%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $60.16
|
| Conversion rate: | 16.6234 shares
|
| Contingent conversion: | Yes, until Nov. 1, 2023
|
| Net share settlement: | Yes
|
| Pricing date: | Feb. 1
|
| Settlement date: | Feb. 6
|
| Distribution: | Rule 144A
|
| Talk: | 3.25%-3.75% yield, 30%-35% conversion premium
|
| Stock symbol: | NYSE: GBX
|
| Stock price: | $43.75 as of Jan. 31 close
|
| Market capitalization: | $1.27 billion
|
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