By Kenneth Lim
Boston, May 17 - Greenbrier Cos, Inc. priced $85 million of 20-year convertible senior unsecured bonds within talk, with a coupon of 2.375% and an initial conversion premium of 30%.
The convertibles were offered at par, and price talk guided for a coupon of 2.125% to 2.625% and an initial conversion premium of 27.5% to 32.5%. The initial conversion ratio is 20.8125 shares per note.
There is a greenshoe for a further $15 million.
Bear Stearns and Bank of America were the bookrunners of the Rule 144A deal, which priced after the close Tuesday.
The convertibles are non-callable for the first seven years and may be put in 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.
| Issuer: | Greenbrier Cos., Inc.
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunners: | Bear Stearns and Bank of America
|
| Amount: | $85 million
|
| Greenshoe: | $15 million
|
| Maturity: | May 15, 2026
|
| Coupon: | 2.375%
|
| Price: | Par
|
| Yield: | 2.375%
|
| Conversion premium: | 30%
|
| Conversion price: | $48.05
|
| Conversion ratio: | 20.8125
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable 7 years
|
| Puts: | Years 7, 10, 15
|
| Price talk: | 2.125%-2.625%, up 27.5%-32.5%
|
| Pricing date: | May 16
|
| Settlement date: | May 22
|
| Distribution: | Rule 144A
|
|
|
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