Greenbrier to price $85 million of 20-year convertibles, talked at 2.125%-2.625%, up 27.5%-32.5%

By Kenneth Lim

Boston, May 16 - Greenbrier Cos. plans to sell $85 million of 20-year convertible senior unsecured bonds, with price talk guiding for a coupon of 2.125% to 2.625% and an initial conversion premium of 27.5% to 32.5%.

The convertibles will be offered at par, and pricing is expected on May 22 after the market closes.

There is a greenshoe option for a further $15 million.

Bear Stearns & Co. and Banc of America Securities are the bookrunners of the Rule 144A deal.

The convertibles will be non-callable for the first seven years, and may be put on years seven, 10 and 15.

There is a contingent conversion threshold at 130% of the conversion price.

The convertibles have full takeover and dividend protection.

Greenbrier is a Lake Oswego, Ore.-based maker of railcars. It will use the proceeds of the offering for general corporate purposes.

Greenbrier stock closed at $36.96 on Tuesday, sliding 6.1% or $2.40 after the deal was announced.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.