iDine $60 million convertible talked at 3.25-3.75% yield, up 20-25%

By Ronda Fears

Nashville, Oct. 7 - iDine Rewards Networks Inc. launched $60 million of 20-year convertible notes talked to yield 3.25% to 3.75% with a 20% to 25% initial conversion premium for pricing after the close Wednesday.

Credit Suisse First Boston is sole bookrunner of the Rule 144Adeal.

The subordinated debentures will be non-callable for five years with puts in years five, 10 and 15. Also, there is a 110% contingent conversion trigger.

Holders will have dividend protection by way of a conversion ratio adjustment.

There is a $10 million greenshoe available.

Miami-based iDine markets programs that offer savings and rewards to members principally when they dine at participating restaurants, plus smaller programs for lodging and travel.

The company said proceeds will be used to pay down the debt outstanding under its existing credit facility, and general corporate purposes.

Also Tuesday, iDine said it expects third-quarter earnings to be within the analysts' expected range of 16-17c a share, which is about even with third quarter 2002 EPS of 16c.

But the company cut its 2003 revenue growth estimate to 20% from its December forecast of 25% to 30% growth, blaming the setback on the blackout in August and Hurricane Isabel in September.

iDine is scheduled to report third quarter results Oct. 22.

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