By Ronda Fears
Nashville, Oct. 16 - Men's Wearhouse Inc. sold $110 million of 20-year convertible notes at par to yield 3.125% with a 42% initial conversion premium, via joint bookrunners Bear Stearns & Co. and Wachovia Securities.
The Rule 144A deal sold at the aggressive end of price talk that had been tightened during the marketing period. Revised guidance was 3.125% to 3.375%, up 40% to 42%. Original price talk was for 3.375% to 3.875%, up 38% to 42%.
Holders will have full dividend protection.
Simultaneously, Men's Wearhouse used $42.3 million of proceeds to purchase shares from buyers of the convertible notes.
Another $43.2 million will be used to repay its existing Canadian term loan.
The Houston men's apparel retailer will use remaining proceeds for general corporate purposes, which may include additional stock repurchases.
Terms of the deal are:
Issuer: Men's Wearhouse Inc.
| Issue: | Convertible senior notes
|
| Lead mangagers: | Bear Stearns and Wachovia Securities
|
| Co-managers: | JPMorgan and Fleet Securities
|
| Amount | $110 million
|
| Greenshoe: | $20 million
|
| Maturity: | October 2023
|
| Coupon: | 3.125%
|
| Price: | Par
|
| Yield: | 3.125%
|
| Conversion premium: | 42%
|
| Conversion price: | $42.88
|
| Conversion ratio: | 23.3187
|
| Call: | Non-callable for 3 years, then 2 years with 140% hurdle
|
| Put: | In years 5, 10 and 15
|
| Contingent conversion: | 120%
|
| Contingent payment: | 120%
|
| Price talk: | Revised: 3.125-3.375%, up 40-42%
|
| Original: 3.375-3.875%, up 38-42%
|
| Pricing date: | Oct. 15, after the close
|
| Settlement date: | Oct. 21
|
| Distribution: | Rule 144A
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
