By Rebecca Melvin
Princeton, N.J., Sept. 14 - Midway Games Inc. priced $65 million of 20-year convertible senior notes at par to yield 6% with an initial conversion premium of 10%.
Bookrunner for the Rule 144A deal was Banc of America Securities LLC. UBS was a co-manager.
The notes, which priced late Tuesday, are non-callable for five years, with puts in years 3.6, five, 10 and 15.
There is a $10 million greenshoe.
The conversion rate is 56.3253 shares per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of about $17.75, the company said.
The paper is tightly held and no trades of the notes were reported in the secondary market, according to a syndicate source.
Proceeds are expected to be used for general corporate purposes, including working capital, capital expenditures and possible future acquisitions or alliances.
Chicago-based Midway is a developer and publisher of interactive entertainment software for video games.
| Issuer: | Midway Games Inc.
|
| Issue: | Senior convertible notes
|
| Bookrunner: | Banc of America Securities LLC
|
| Amount: | $65 million
|
| Greenshoe: | $10 million
|
| Maturity: | Sept. 30, 2025
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 10%
|
| Conversion price: | $17.75
|
| Conversion ratio: | 56.3253
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call: | Non-callable for five years (Oct. 5, 2010)
|
| Put: | In years 3.6, 5, 10 and 15
|
| Pricing date: | Sept. 13
|
| Settlement date: | Sept. 19
|
| Distribution: | Rule 144A
|
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