By Kenneth Lim
Boston, Oct. 27 - Kemet Corp. on Thursday priced $160 million of 20-year convertible senior notes at the rich end of talk, at a coupon of 2.25% and an initial conversion premium of 30%.
The notes were talked at a coupon of 2.25% to 2.75% and an initial conversion premium of 25% to 30%. They priced at par.
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 are non-callable for the first five years, with puts in years five, 10 and 15.
There is a contingent conversion hurdle at 130% of the conversion price.
The notes have dividend protection and a change-of-control put with 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.
| Issuer: | Kemet Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Credit Suisse and Deutsche Bank
|
| Amount: | $160 million
|
| Greenshoe: | $15 million
|
| Maturity: | Nov. 15, 2026
|
| Coupon: | 2.25%
|
| Price: | Par
|
| Yield: | 2.25%
|
| Conversion premium: | 30%
|
| Conversion price: | $9.70
|
| Conversion ratio: | 103.0928
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Nov. 15, 2011
|
| Puts: | Nov. 15, 2011; Nov. 15, 2016; Nov. 15, 2021
|
| Price talk: | 2.25%-2.75%, up 25%-30%
|
| Pricing date: | Oct. 26 after the close
|
| Settlement date: | Nov. 1
|
| Distribution: | Rule 144A
|
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