By Stephanie N. Rotondo
Seattle, May 9 – Kaman Corp. sold $175 million of seven-year convertible senior notes at par to yield 3.25% with an initial conversion premium of 25%, the company said in a press release.
The deal came at the rich end of the 3.25% to 3.75% yield talk and on the cheap side of the 25% to 30% premium talk.
BofA Merrill Lynch, J.P. Morgan Securities LLC and UBS Securities LLC are the joint bookrunners on the Rule 144A deal.
There is a $25 million 13-day greenshoe.
Conversions will be settled in cash, common stock or a combination, at the company’s option. The conversion price is $65.26 per share, or 15.3227 shares per each $1,000 of notes.
The issue is non-callable for life. The paper is contingently convertible prior to Nov. 1, 2023, should the stock hit a 130% price hurdle. After that date, the notes can be converted at any time.
Holders can put the issue in the event of a change of control.
In connection with the deal, Kaman expects to enter into capped call transactions with one or more of the initial purchasers and/or their affiliates.
About $17.9 million of the proceeds will go toward the capped call transactions. Another $165.3 million will be used to repurchase about $103.5 million principal amount of convertible notes coming due Nov. 15. Any remaining funds will be used to repay debt under an existing credit agreement.
Kaman is a Bloomfield, Conn.-based diversified company that conducts business in the aerospace and distribution markets.
| Issuer: | Kaman Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $175 million
|
| Greenshoe: | $25 million
|
| Maturity: | May 1, 2024
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC and UBS Securities LLC
|
| Coupon: | 3.25%
|
| Price: | Par of $1,000
|
| Yield: | 3.25%
|
| Call options: | None
|
| Put options: | Upon a fundamental change
|
| Conversion premium: | 25%
|
| Conversion price: | $65.26
|
| Conversion rate: | 15.3227
|
| Pricing date: | May 8
|
| Settlement date: | May 12
|
| Distribution: | Rule 144A
|
| Talk: | 3.25% to 3.75% yield, up 25% to 30%
|
| Stock symbol: | NYSE: KAMN
|
| Stock price: | $52.21 as of May 8 close
|
| Market capitalization: | $1.37 billion
|
© 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.
