Kellwood $180 million convertible talked at 3.125%-3.625%, up 30%-35%

By Ronda Fears

Nashville, June 15 - Kellwood Co. launched after the close Tuesday $180 million of 30-year convertible notes talked to yield 3.125% to 3.625% with a 30% to 35% initial conversion premium.

JPMorgan Securities Inc. is bookrunner of the Rule 144A deal, which is slated to price after the market close Wednesday.

The senior notes will be non-callable for seven years with puts in years seven, 10, 15, 20 and 25. There is a 130% contingent conversion trigger and 130% contingent payment trigger.

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

There was no cash takeover provision in the marketing materials, according to market sources.

A $20 million greenshoe is available.

St. Louis-based Kellwood, which makes apparel and fashion accessories, said proceeds would be used for general corporate purposes, including acquisitions, and to pay $4.7 million under its 6.9% notes due Sept. 1, 2005.

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