New York, May 1 - KeySpan Corp. priced $400 million of three-year mandatory convertibles to yield 8.75% and with a 20% initial conversion premium.
The deal priced with a yield at the high end of talk of 8.25% to 8.75% and a conversion premium in the middle of talk of 18% to 22%.
Bookrunner for the offering was JPMorgan Securities.
The convertibles are structured as equity units made up of a senior unsecured note and a stock purchase contract.
The New York natural gas distributor will use proceeds to pay down short-term debt.
Terms of the new deal are:
| Issuer: | KeySpan Corp.
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| Amount: | $400 million
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| Lead manager: | JPMorgan
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| Maturity date: | May 16, 2005
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| Coupon: | 8.75%
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| Price: | Par of $50
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| Yield: | 8.75%
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| Conversion premium: | 20%
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| Conversion ratio: | 1.18/1.42
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| Conversion price: | $42.36/$35.30
|
| Call: | Non-callable
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| Settlement: | May 6
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| Ratings: | Moody's: A3
|
| S&P: A
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| Listing: | KSE Pr A on New York Stock Exchange
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