Nashville, Aug. 5 - Andrew Corp. sold $200 million of 10-year convertible notes at par to yield 3.25% with a 38% initial conversion premium - at the cheap end of guidance which had put the yield at 2.75% to 3.25% with a 37% to 42% initial conversion premium.
Citigroup, Morgan Stanley and Banc of America Securities were lead managers of the Rule 144A deal.
The issue was sold on swap with Andrew using some proceeds to purchase up to 5 million shares of common stock from convertible buyers. The company said remaining proceeds would be used for general corporate purposes, including paying off current short-term borrowings of about $10 million.
Terms of the new deal are:
Issuer: Andrew Corp.
| Issue: | Convertible senior unsecured notes
|
| Lead managers: | | Citigroup, Morgan Stanley and Banc of America Securities
|
| Amount | $200 million
|
| Greenshoe: | $40 million
|
| Maturity: | Aug. 15, 2013
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 38%
|
| Conversion price: | $13.69
|
| Conversion ratio: | 73.0482
|
| Call: | Non-callable for 5 years
|
| Put: | In year 5
|
| Contingent conversion: | 120%
|
| Price talk: | 2.75-3.25%, up 37-42%
|
| Pricing date: | Aug. 4, after the close
|
| Settlement: | Aug. 8
|
| Distribution: | Rule 144A
|
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