By Rebecca Melvin
New York, June 2 - MasTec Inc. priced $100 million of five-year convertible notes in a drive-by offering late Monday at par to yield 4% with an initial conversion premium of 30%.
The notes priced at the midpoint of talk, which was for a coupon of 3.75% to 4.25% with an initial conversion premium of 27.5% to 32.5%.
MasTec said shareholder Jon Wanzek, founder and chief executive of Wanzek Construction Inc., and his affiliates, also sold an upsized 4.5 million shares of their common stock at a public offering price of $12.125 a share.
Originally 4 million shares of common stock were expected by be sold. In addition, Wanzek and his affiliates have granted underwriters an additional 675,000 shares to cover over-allotments.
Morgan Stanley & Co. Inc. is acting as the bookrunner, and FBR Capital Markets is acting as co-manager of the registered offerings.
There is a $15 million greenshoe of notes, which are non-callable and 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.
Remaining proceeds will be 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 shares.
MasTec is a Coral Gables, Fla., telecommunications and energy infrastructure company.
| Issuer: | MasTec Inc.
|
| Issue: | Convertible notes
|
| Amount: | $100 million
|
| Maturity: | June 15, 2014
|
| Bookrunner: | Morgan Stanley & Co. Inc.
|
| Co-manager: | FBR Capital Markets
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 30%
|
| Conversion price: | $15.76
|
| Conversion ratio: | 63.4417
|
| Price talk: | 3.75%-4.25%, up 27.5%-32.5%
|
| Call: | Non-callable for life
|
| Puts: | Change-of-control put
|
| Pricing date: | June 1
|
| Settlement date: | June 5
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: MTZ
|
| Market capitalization: | $1.01 billion
|
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