Nashville, Dec. 17 - Mentor Corp. sold $125 million of 20-year convertible notes at par to yield 2.75% with a 30% initial conversion premium via bookrunner Credit Suisse First Boston.
The Rule 144A deal priced at the aggressive end of guidance of 2.75% to 3.25%, up 25% to 30%.
Mentor said it will use $35 million of proceeds, on a net basis, to enter convertible note hedge and warrant transactions and repurchase stock from investors buying the notes.
The Santa Barbara, Calif.-based breast implant maker said it would use the balance of proceeds for general corporate purposes, which may include additional repurchases of stock.
Also, the company said it may use a portion of proceeds for acquisitions and, pending such uses, intends to invest in investment-grade obligations and interest-bearing money market instruments.
Terms of the deal are:
| Issuer: | Mentor Corp.
|
| Issue: | Convertible subordinated notes
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| Bookrunner: | Credit Suisse First Boston
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| Amount: | $125 million
|
| Greenshoe: | $25 million
|
| Maturity: | Jan. 1, 2024
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| Coupon: | 2.75%
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| Price: | Par
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| Yield: | 2.75%
|
| Conversion premium: | 30%
|
| Conversion price: | $29.29
|
| Conversion ratio: | 34.1425
|
| Call: | Non-callable for 5 years
|
| Put: | In years 5, 10 and 15
|
| Contingent conversion: | 120%
|
| Price talk: | 2.75-3.25%, up 25-30%
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| Pricing date: | Dec. 16, after the close
|
| Settlement date: | Dec. 22
|
| Distribution: | Rule 144A/Regulation S
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