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MasTec to price $100 million five-year convertibles to yield 3.75%-4.25%, up 27.5%-32.5%
By Rebecca Melvin
New York, June 1 - MasTec Inc. planned to price a drive-by offering of $100 million of five-year convertible notes after the close Monday to yield 3.75% to 4.25% with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.
The registered non-callable five-year notes were to be priced via bookrunner Morgan Stanley & Co. Inc.
MasTec also plans to offer 4 million shares of common stock by certain selling shareholders. All of the shares are being offered by Jon Wanzek, founder and chief executive of Wanzek Construction Inc., and his affiliates.
Wanzek and affiliates received 7.5 million MasTec shares in conjunction with MasTec's 2008 acquisition of Wanzek Construction. Assuming a successful completion of the common stock offering, Wanzek and his affiliate group will remain one of MasTec's largest shareholders.
There is a $15 million greenshoe in the convertibles offering.
The convertible notes will be guaranteed by the MasTec subsidiaries that guarantee MasTec's 7.625% senior notes due 2017.
Proceeds of the convertible offering will be used to refinance MasTec's existing $55 million 8% convertible notes issued in conjunction with MasTec's 2008 acquisition of Wanzek Construction, for working capital, for possible acquisitions of assets and businesses, and for general corporate purposes.
MasTec will not receive any proceeds from the sale of the shares of common stock by the selling shareholders.
Closing of the convertible notes offering and the common stock offering will not be contingent on each other.
MasTec is a Coral Gables, Fla., telecommunications and energy infrastructure company.
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