KEYW offers $125 million five-year convertible notes to yield 2%-2.5%, up 22.5%-27.5%

By Rebecca Melvin

New York, July 15 – KEYW Holding Corp. plans to price $125 million of five-year convertible senior notes before the market open on Wednesday that were talked to yield 2% to 2.5% with an initial conversion premium of 22.5% to 27.5%, according to a market source.

The registered, off-the-shelf deal has a greenshoe of $18.75 million.

The securities are being sold via RBC Capital Markets LLC and BofA Merrill Lynch as joint bookrunners, with SunTrust Robinson Humphrey Inc. acting as a co-manager.

The notes are non-callable for life.

In connection with the pricing of the notes, KEYW is planning to enter into privately negotiated capped call transactions with one or more of the underwriters.

A portion of the proceeds will be used to pay the net cost of the capped call. The majority of proceeds will be used to repay the company’s outstanding balances under an existing credit facility, with remaining proceeds to be used for working capital, capital expenditures and other general corporate purposes, including potential acquisitions.

Hanover, Md.-based KEYW is a cyber-security services company.

© 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.