By Kenneth Lim
Boston, June 1 - Kulicke and Soffa Industries Inc. priced $100 million of five-year convertible subordinated notes cheaper than talk on Thursday, reoffered at 97.5 with a coupon of 0.875% and an initial conversion premium of 50%.
The deal was talked at a reoffered priced of 98 to 98.5 with a coupon of 0.75% to 0.875% and an initial conversion premium of 50%. Pricing took place after the market closed.
The $10 million over-allotment option was exercised Friday, raising the deal to $110 million.
Banc of America was the bookrunner of the Rule 144A offering.
If the stock price exceeds the initial conversion price of $14.355 per share, holders will receive up to an additional 34.8311 shares of the company per $1,000 principal amount of notes upon conversion.
The convertibles are non-callable and may not be put.
There is a contingent conversion trigger at 130% of the conversion price.
The convertibles have dividend and takeover protection.
There is a net-share settlement feature.
Kulicke and Soffa, a Fort Washington, Pa.-based maker of semiconductor equipment and packaging materials, said it will buy back up to $40 million of its common stock concurrently with the offering and use the remaining proceeds to retire part of its outstanding 0.5% convertible subordinated notes due 2008.
| Issuer: | Kulicke and Soffa Industries Inc.
|
| Issue: | Convertible subordinated notes
|
| Bookrunner: | Banc of America
|
| Amount: | $100 million
|
| Greenshoe: | $10 million
|
| Maturity: | June 1, 2012
|
| Coupon: | 0.875%
|
| Price: | Par, reoffered at 97.5
|
| Yield: | 0.875%
|
| Conversion premium: | 50%
|
| Conversion price: | $14.355
|
| Conversion ratio: | 69.6621, up to an additional 34.8311 if stock trades above $14.355
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 0.75%-0.875%, up 50%, reoffered at 98-98.5
|
| Pricing date: | May 31, after the close
|
| Settlement date: | June 6
|
| Distribution: | Rule 144A
|
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