Kemet to price $160 million 20-year convertibles Thursday, talked at 2.25%-2.75%, up 25%-30%

By Kenneth Lim

Boston, Oct. 25 - Kemet Corp. plans to price $160 million of 20-year convertible senior notes on Thursday, talked at a coupon of 2.25% to 2.75% and an initial conversion premium of 25% to 30%.

The convertibles will be offered at par, and pricing is expected after the market closes.

There is an over-allotment option for a further $15 million.

Credit Suisse and Deutsche Bank are the bookrunners of the Rule 144A offering.

The notes will be non-callable for the first five years with puts in years five, 10 and 15.

There will be a contingent conversion hurdle at 130% of the conversion price.

The notes will have dividend protection and a change-of-control premium make-whole.

Kemet, a Simpsonville, S.C.-based maker of capacitors, said the proceeds of the deal will be used to buy back up to $25 million of its common stock, to fund any future acquisitions and for general purposes.

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