By Rebecca Melvin
Boston, March 30 - Mentor Graphics Corp. priced $220 million of 20-year convertible subordinated debentures after the market close on Tuesday at par to yield 4% with an initial conversion premium of 40%, according to a news release.
The Rule 144A deal came at the rich end of coupon talk, which was 4% to 4.5%, and at the midpoint of 37.5% to 42.5% conversion premium talk.
Citigroup Global Markets Inc. and Merrill Lynch were the bookrunners of the offering, which has an over-allotment option for an additional $33 million of debentures.
The notes may be called after five years and can be put in years seven, 10 and 15.
There is a contingent conversion threshold at 120% of the conversion price.
The notes will have standard dividend and takeover protection.
Proceeds will be used to buy back up to $25 million of common stock, to repay an $18.5 million term loan due 2013 and to retire the company's existing 6.25% convertible subordinated debentures due 2026.
Wilsonville, Ore.-based Mentor Graphics provides software used in electronic design.
| Issuer: | Mentor Graphics Corp.
|
| Issue: | Convertible subordinated debentures
|
| Amount: | $220 million
|
| Greenshoe: | $33 million
|
| Maturity: | April 1, 2031
|
| Bookrunners: | Citigroup Global Markets Inc., Merrill Lynch
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 40%
|
| Conversion price: | $20.54
|
| Conversion ratio: | 48.6902
|
| Calls: | Non-callable until April 1, 2016
|
| Puts: | In years seven, 10 and 15
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Contingent conversion: | Yes, at 120%
|
| Price talk: | 4%-4.5%, up 37.5%-42.5%
|
| Pricing date: | March 29, after the close
|
| Settlement date: | April 4
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: MENT
|
| Stock reference price: | $14.67 at close March 29
|
| Market capitalization: | $1.69 billion
|
© 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.
