By Rebecca Melvin
New York, July 29 - MF Global Holdings Ltd. priced an upsized $325 million of seven-year convertible senior notes after the close of markets Thursday at par to yield 3.375% with a 32.5% initial conversion premium, according to a news release.
The registered, off-the-shelf deal was initially going to be $300 million in size. The $45 million over-allotment option was left unchanged.
Pricing came at the cheap end of talked terms, which were for a yield of 2.875% to 3.375% and a premium of 32.5% to 37.5%.
Goldman Sachs & Co. and Citigroup Global Markets Inc. were the joint bookrunners. Co-managers were Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and RBS Securities Inc.
The notes are non-callable. There are no puts. There is standard dividend and takeover protection and net share settlement.
About $131 million of the proceeds will be used to repurchase $109.1 million of MF Global's outstanding 9% convertible senior notes due 2038, for general corporate purposes and to fund the cost of convertible note hedge transactions.
MF Global is entering into convertible note hedge and warrant transactions with certain counterparties, including one or more of the underwriters and/or their affiliates. The strike price on the warrants is $13.0725, which boosts the effective conversion premium from the issuer's perspective to 75%.
MF Global sold $250 million of 1.875% five-year convertible senior notes in February.
New York-based MF Global is a global broker-dealer of commodities and listed derivatives.
| Issuer: | MF Global Holdings Ltd.
|
| Issue: | Convertible senior notes
|
| Amount: | $325 million, upsized from $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | Aug. 1, 2018
|
| Bookrunners: | Goldman Sachs & Co., Citigroup Global Markets Inc.
|
| Co-managers: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., RBS Securities Inc.
|
| Coupon: | 3.375%
|
| Price: | Par
|
| Yield: | 3.375%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $9.90
|
| Conversion ratio: | 101.0331
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Net share settlement: | Yes
|
| Price talk: | 2.875%-3.375%, up 32.5%-37.5%
|
| Pricing date: | July 28, after the market close
|
| Settlement date: | Aug. 2
|
| Rating: | Moody's: Baa2
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | NYSE: MF
|
| Stock price: | $7.47 at close July 28
|
| Market capitalization: | $1.2 billion
|
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