By Ronda Fears
Nashville, May 13 - KV Pharmaceutical Co. sold an upsized $175 million of 30-year convertible notes, which convert into Class A shares of the company, at par to yield 2.5% with a 37.5% initial conversion premium via joint lead managers Deutsche Bank Securities Inc. and Banc of America Securities.
The overnight Rule 144A deal, which was upped from $130 million, sold at the middle of price talk which had put the yield at 2.25% to 2.75% and the initial conversion premium at 35% to 40%.
KV Pharmaceutical said it plans to use $50 million of the proceeds to buy back class A shares and remaining proceeds for future acquisitions and general corporate purposes.
Terms of the deal are:
Issuer: KV Pharmaceutical Co.
| Issue: | Convertible subordinated notes
|
| Joint lead managers: | Deutsche Bank Securities and Banc of America Securities
|
| Amount | $175 million, upped from $130 million
|
| Greenshoe: | $25 million
|
| Maturity: | May 15, 2033
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $34.51
|
| Conversion ratio: | 28.975
|
| Call: | Non-callable for three years
|
| Put: | In years 5, 10, 15, 20 and 25
|
| Contingent conversion: | 120%
|
| Contingent payment: | 120%
|
| Settlement: | May 16
|
|
|
© 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.
