Macquarie plans $250 million five-year convertibles to yield 2.875%-3.375%, up 17.5%-22.5%

By Rebecca Melvin

New York, July 7 – Macquarie Infrastructure Co. LLC plans to price $250 million of five-year convertible senior notes on Wednesday following a two-day marketing period.

The convertibles are being talked with a 2.875% to 3.375% coupon and a 17.5% to 22.5% initial conversion premium, according to a syndicate source.

The convertible deal has a $37.5 million greenshoe and is coming concurrently with 10 million shares of common stock, which will raise about $600 million.

The convertibles are non-callable for life and mature July 15, 2019.

Proceeds from both offerings will be used to finance, in part, Macquarie’s acquisition of the remaining equity interest in International-Matex Tank Terminals it does not currently own. Closing of the offering is not conditioned on closing of the equity offering or of the International-Matex Tank Terminals acquisition.

Joint bookrunning managers of the deal are Barclays, J.P. Morgan Securities LLC, RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC.

Co-managers are BofA Merrill Lynch and Oppenheimer & Co. The notes will not be listed on any securities exchange.

New York-based Macquarie owns, operates and invests in a diversified group of infrastructure businesses that provide basic services.

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