New Issue: Keane $125 million convertible yields 2.0%, up 47.5%

By Ronda Fears

Nashville, June 13 - Keane Inc. sold $125 million of 10-year convertible subordinated notes at par to yield 2.0% with a 47.5% initial conversion premium.

The Rule 144A deal, via lead manager Morgan Stanley, sold at the middle of price talk which put the yield at 1.75% to 2.25% with an initial conversion premium of 45% to 50%.

Keane, a Boston-based IT consulting firm, said it would use proceeds to buyback stock and general corporate purposes.

Terms of the deal are:

Issuer: Keane Inc.

Issue:	Convertible subordinated notes
Lead manager:	Morgan Stanley
Co-managers:	Wachovia Securities and FleetBoston
Amount	$125 million
Greenshoe:	$25 million
Maturity:	June 15, 2013
Coupon:	2.0%
Price:	Par
Yield:	2.0%
Conversion premium:	47.5%
Conversion price:	$18.349
Conversion ratio:	54.4989
Call:	Non-callable for 5 years
Put:	In year 5
Contingent conversion:	120% of conversion price or 98% of parity
Contingent payment:	120% after year 5
Price talk:	1.75-2.25%, up 45-50%
Distribution:	Rule 144A
Pricing date:	June 12
Settlement:	June 18

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