By Rebecca Melvin
New York, June 20 - MF Global Ltd. priced a $150 million offering of 30-year convertible senior notes to yield 9% and a $150 million offering of non-cumulative convertible preference shares with a 9.75% dividend, both with initial conversion premiums of 22.22%, according to a syndicate source.
The two Rule 144A offerings were sold via Banc of America Securities LLC, Morgan Stanley & Co. Inc., Citigroup and J.P. Morgan Securities Inc.
The senior notes priced well beyond the range of talk, which was for a coupon of 4% to 4.5% with an initial conversion premium of 10% to 15%.
They are non-callable for five years, with puts in years five, 10, 15, 20 and 25.
The non-cumulative perpetual convertible preference shares, series B, were talked with a dividend of 4.75% to 5.25%, also with an initial conversion premium of 10% to 15%.
The shares are non-callable for 10 years, with auto conversion thereafter at 250% of the conversion price. There are no puts.
Proceeds of the offerings, together with other components of the company's capital plan, will be used to repay an outstanding bridge loan due in December.
The offerings follow the company's previously announced backstop commitment from an affiliate of J.C. Flowers & Co. LLC to purchase up to $300 million of a separate series of convertible preference shares, with the actual amount purchased to be reduced by subsequent equity offerings. As a result of the offering of the preference shares, J.C. Flowers will now purchase $150 million of the separate series of convertible preference shares.
Hamilton, Bermuda-based MF Global is a broker of exchange-listed futures and options.
| Issuer: | MF Global Ltd.
|
| Bookrunners: | Banc of America Securities LLC, Morgan Stanley & Co. Inc., Citigroup and J.P. Morgan Securities Inc.
|
| Pricing date: | June 19
|
| Settlement date: | June 25
|
| Distribution: | Rule 144A
|
| Stock listing: | NYSE: MF
|
|
|
| Convertible senior notes
|
| Issue: | Convertible unsecured senior notes
|
| Amount: | $150 million
|
| Maturity: | June 20, 2038
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion premium: | 22.22%
|
| Conversion price: | $10.45
|
| Price talk: | 4.5%-5%, up 10%-15%
|
| Calls: | Non-callable for five years
|
| Puts: | Puts in years five, 10, 15, 20 and 25
|
|
|
| Convertible preference shares
|
| Issue: | Non-cumulative convertible preference shares
|
| Amount: | $150 million
|
| Maturity: | Perpetual
|
| Dividend: | 9.75%
|
| Price: | Par
|
| Yield: | 9.75%
|
| Conversion premium: | 22.22%
|
| Conversion price: | $10.45
|
| Price talk: | 4.75%-5.25%, up 10%-15%
|
| Calls: | Non-callable for 10 years, with auto conversion thereafter at 250% of conversion price
|
| Puts: | No puts
|
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