Kemet $15 million greenshoe exercised, raising convertibles to $175 million

By Jennifer Chiou

New York, Nov. 17 - Kemet Corp.'s underwriters fully exercised a $15 million greenshoe to increase its 2.25% convertible senior notes due Nov. 15, 2026 issue to $175 million, according to an 8-K filing with the Securities and Exchange Commission.

After the close on Oct. 26, the company priced $160 million of the 20-year convertibles at the rich end of talk with an initial conversion premium of 30%.

As previously reported, 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.

Credit Suisse and Deutsche Bank were the bookrunners for 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 a make-whole premium.

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 corporate purposes.

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