Published on 6/16/2004 in the Prospect News Convertibles Daily.
New Issue: Kellwood $180 million cash-to-zero convertibles yield 3.5%, up 30%
Nashville, June 16 - Kellwood Co. sold $180 million of 30-year cash-to-zero convertible notes at par for a yield to maturity of 3.5% and 30% initial conversion premium via sole bookrunner JPMorgan Securities Inc.
The Rule 144A deal sold at the cheaper end of yield talk for a 3.125% to 3.625% coupon and cheapest end of guidance for a 30% to 35% initial conversion premium.
Holders will have full dividend protection.
There was no cash takeover provision for holders, according to buyside sources.
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.
Terms of the deal are:
Issuer: | Kellwood Co.
|
Issue: | Convertible senior notes
|
Bookrunners: | JPMorgan Securities Inc.
|
Amount: | $180 million
|
Greenshoe: | $20 million
|
Maturity: | June 15, 2034
|
Coupon: | 3.5%
|
Price: | Par
|
Yield: | 3.5%
|
Conversion premium: | 30%
|
Conversion price: | $53.35
|
Conversion ratio: | 18.7434
|
Contingent conversion: | 131.5%, adjusted from 130%
|
Dividend protection: | Yes
|
Takeover protection: | NA
|
Call: | Non-callable for 7 years
|
Put: | In years 7, 10, 15, 20, 25
|
Ratings: | S&P: BBB-
|
Price talk: | 3.125-3.625%, up 30-35%
|
Pricing date: | June 16, after the close
|
Settlement date: | June 22
|
Distribution: | Rule 144A
|
|
© 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.