By Rebecca Melvin
New York, Sept. 25 - GT Advanced Technologies Inc. priced an upsized $205 million of five-year convertible senior notes after the market close Monday at par to yield 3% with an initial conversion premium of 30%, according to a term sheet.
The registered offering was initially going to be $175 million in size, and pricing came at the rich end of talk, which was for a 3% to 3.5% yield and 25% to 30% premium.
The greenshoe was downsized to $15 million from $26.25 million.
UBS Investment Bank, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC were the joint bookrunners. RBS Securities Inc. was the joint lead manager, and Santander was a co-manager.
The bonds have contingent conversion if the price of shares is 130% of conversion for 20 out of 30 trading days.
The bonds are non-callable with no puts; and the company also entered into convertible note hedge and warrant transactions, or a call spread. The strike on the warrants boosts the initial conversion premium of the bonds from the issuer's perspective to 67.5%.
The bonds also have takeover protection.
Proceeds will be used for general corporate purposes, which may include acquisitions, repayment and refinancing, working capital and capital expenditures. Proceeds will also fund the call spread.
Merrimack, N.H.-based GT Advanced Technologies is a provider of equipment and services that support the growth of the solar and LED industries.
| Issuer: | GT Advanced Technologies Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $205 million, upsized from $175 million
|
| Greenshoe: | $15 million, downsized from $26.25 million
|
| Maturity: | Oct. 1, 2017
|
| Bookrunners: | UBS Investment Bank, Bank of America Merrill Lynch, and Credit Suisse Securities (USA) LLC
|
| Joint lead manager: | RBS Securities Inc.
|
| Co-manager: | Santander
|
| Coupon: | 3%
|
| Price: | Par, $1,000
|
| Yield: | 3%
|
| Conversion premium: | 30%
|
| Conversion price: | $7.71
|
| Conversion rate: | 129.7185
|
| Contingent conversion: | Yes, at 130%
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Call spread: | Yes, boosts premium to 67.5% from issuer's perspective
|
| Price talk: | 3%-3.5%, up 25%-30%
|
| Distribution: | Registered
|
| Pricing date: | Sept. 24
|
| Settlement date: | Sept. 28
|
| Stock symbol: | Nasdaq: GTAT
|
| Stock price: | $5.93, as of close Sept. 24
|
| Market capitalization: | $702.4 million
|
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