Nashville, April 30 - Matria Healthcare Inc. sold $75 million of 20-year convertible senior subordinated notes at par to yield 4.875% with a 47.5 % initial conversion premium via sole bookrunner UBS Investment Bank.
The Rule 144A deal priced at the middle of yield talk for a 4.625% to 5.125% coupon and at the aggressive end of premium guidance of 42.5% to 47.5%.
Holders will have full dividend protection.
Proceeds will be used to redeem Matria's $122 million of 11% senior notes. On May 23, the company extended the tender offer for those notes, which had been due to expire May 27, until noon on May 28. As of midnight April 22, the company said it had received valid tenders from holders of $120 million principal amount of the notes, representing 98.36% of the outstanding amount.
Terms of the deal are:
| Issuer: | Matria Healthcare Inc.
|
| Issue: | Convertible senior subordinated notes
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| Bookrunner: | UBS Investment Bank
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| Amount: | $75 million
|
| Greenshoe: | $11.25 million
|
| Maturity: | May 1, 2024
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| Coupon: | 4.875%
|
| Price: | Par
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| Yield: | 4.875%
|
| Conversion premium: | 47.5%
|
| Conversion price: | $29.49
|
| Conversion ratio: | 33.9153
|
| Contingent conversion: | 125%
|
| Call: | Non-callable for 5 years with 150% trigger and coupon make-whole
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| Put: | In years 5, 10 and 15
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| Price talk: | 4.625-5.125%, up 42.5-47.5%
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| Pricing date: | April 29, after the close
|
| Settlement date: | May 5
|
| Distribution: | Rule 144A
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