By Rebecca Melvin
Princeton, N.J., Aug. 10 - Maxtor Corp. priced $300 million of seven-year convertibles at par to yield 2.375% with a 23% the initial conversion premium.
Bookrunner for the Rule 144A deal was Citigroup. Merrill Lynch was a joint lead manager and Goldman Sachs was a co-manager.
The issue priced at the cheap end of talk, which was for a coupon of 1.875% to 2.375% and an initial conversion premium of 23% to 27%.
The convertible senior notes have a $45 million greenshoe.
They are non-callable for five years and include dividend and takeover protection.
Maxtor, a supplier of hard disk drives based in Milpitas, Calif., plans to use proceeds to retire outstanding debt, including retirement of up to $150 million of its 6.80% convertible senior notes due 2010, and for other general corporate purposes.
Pending application of funds, the company expects to invest the net proceeds in investment-grade, interest-bearing securities.
| Issuer: | Maxtor Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Citigroup
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | Aug. 15, 2012
|
| Coupon: | 2.375%
|
| Price: | Par
|
| Yield: | 2.375%
|
| Conversion premium: | 23%
|
| Conversion price: | $6.53
|
| Conversion ratio: | 153.1089
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Call: | Non-callable for 5 years
|
| Price talk: | 1.875%- 2.375%, up 23%-27%
|
| Pricing date: | Aug. 9, after the close
|
| Settlement date: | Aug. 15
|
| Distribution: | Rule 144A
|
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