By Ronda Fears
Nashville, Oct. 23 - Grey Global Group sold an upsized $125 million of 30-year convertible notes at par to yield 5.0% with a 35% initial conversion premium, via bookrunner JPMorgan.
The Rule 144A deal, boosted from $100 million, sold aggressively outside of price talk that had been tightened during the one-day marketing period.
Originally, guidance was for a 5.0% to 5.5% coupon and 23% to 27% premium. That was revised to 5.0%, up 28-32% before pricing.
Holders will have dividend protection by way of a conversion price adjustment.
The New York advertising firm said it expects to use proceeds for working capital and other general corporate purposes, which may include, without limitation, possible acquisitions. The company also said it has no specific plans for any acquisitions.
Terms of the deal are:
| Issuer: | Grey Global Group
|
| Issue: | Convertible subordinated debentures
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| Lead manager: | JPMorgan
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| Amount: | $125 million, up from $100 million
|
| Greenshoe: | $25 million, unchanged
|
| Maturity: | October 2033
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| Coupon: | 5.0%
|
| Price: | Par
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| Yield: | 5.0%
|
| Conversion premium: | 35%
|
| Conversion price: | $961.20
|
| Conversion ratio: | 1.0404
|
| Call: | Non-callable for 10 years
|
| Contingent conversion: | 120%
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| Contingent payment: | 120%
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| Price talk: | Original: 5.0-5.5%, up 23-27%
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| Revised: 5.0%, up 28-32%
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| Pricing date: | Oct. 22, after the close
|
| Settlement: | Oct. 29
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| Distribution: | Rule 144A
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